The stock of Nugents Nougats currently sells for $44 and has an annual standard deviation of 45

Question:

The stock of Nugents Nougats currently sells for $44 and has an annual standard deviation of 45 percent. The stock has a dividend yield of 1.5 percent, and the risk-free rate is 5.3 percent. What is the value of a call option on the stock with a strike price of $40 and 65 days to expiration?

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...