Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $32, (2) strike price is $36, (3) time to expiration is 4 months, (4) annualized risk-free rate is 6%, and (5) variance of stock return is 0.25. Do not round intermediate calculations.

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Black Scholes Model Pricing 1The value of an option ... View the full answer