Question: post all the steps Let S = $49, s = 31%, and r = 7.5% (continuously compounded). The stock is set to pay a single

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Let S = $49, s = 31%, and r = 7.5% (continuously compounded). The stock is set to pay a single dividend of $2.20 six months from today, with no further dividends expected this year. Use the Black-Scholes model (adjusted for the dividend) to compute the value of a one-year $55-strike European call option on the stock.

	a.	$7.17
	b.	$8.32
	c.	$5.14
	d.	$5.37
	e.	$4.18

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