Question: table [ [ Time to expiration, 6 , months ] , [ Standard deviation, 5 0 % , per year ] , [ Exercise

\

table

[[

Time to expiration,

6,

months

], [

Standard deviation,

50 %,

per year

], [

Exercise price,$

50,], [

Stock price,$

50,], [

Interest rate,

3 %,], [

Dividend

, 0,]]

Required:

Use the Black

-

Scholes formula to find the value of call option on the above stock: Calculate the value of a call option.

(

Do not round intermediate calculations. Round your answer to

2

decimal places.

)

Value of a call option

$\table[[Time to expiration,6,months],[Standard deviation,50%,per year],[Exercise price,$50,],[Stock price,$50,],[Interest rate,3%,],[Dividend,0,]] Required: Use the$

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