Question: Time to expiration = 6 months Standard deviation = 50 % per year Exercise price = $ 50 Stock price = $ 50 Interest rate


Time to expiration	=		6		months
Standard deviation	=		50	%	per year
Exercise price	=	$	50
Stock price	=	$	50
Interest rate	=		3	%

Use the Black-Scholes formula to find the value of a 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

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