Question: Problem 1 6 - 1 4 Black - Scholes Model ( LO 2 , CFA 2 ) A call option matures in six months. The

Problem 16-14 Black-Scholes Model (LO2, CFA2)
A call option matures in six months. The underlying stock price is $72, and the stock's return has a standard deviation of 32 percent
per year. The risk-free rate is 6.4 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call
option?
Price of the call option
Problem 16-14 Black-Scholes Model (LO2, CFA2) A call option matures in

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