Question: Using the Black-Scholes formula as presented in Chapter 13, what is the price of a European call option on a non-dividend-paying stock when the stock

Using the Black-Scholes formula as presented in Chapter 13, what is the price of a European call option on a non-dividend-paying stock when the stock price is $78, the strike price is $75, the risk-free interest rate is 12% per annum, the volatility is 30% per annum, and the time to maturity is three months?

	a.	$7.59
	b.	$5.06
	c.	$4.83
	d.	$2.06
	e.	$6.96

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