Use the Black-Scholes formula to find the value of a call option on the following stock: Time

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Use the Black-Scholes formula to find the value of a call option on the following stock:
Time to expiration = 6 months
Standard deviation = 50% per year
Exercise price = $50
Stock price = $50
Interest rate = 3%
Dividend = 0

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Essentials of Investments

ISBN: 978-0077835422

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Nov 30, 2017 10:12 AM

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Use the Black-Scholes formula to find the value of a call option on the following stock: Time

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Essentials of Investments

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