Question: post all the steps Let S = $57, s = 26%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for

post all the steps

Let S = $57, s = 26%, r = 4%, and d = 2.5% (continuously compounded). Compute the Black-Scholes price for a $50-strike European call option with 3 months until expiration.

a.

$0.53

b.

$7.53

c.

$7.00

d.

$7.89

e.

$7.68

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