A stock trades for 45 per share a call option on that stock, Financial Management

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A stock trades for 45 per share a call option on that stock

A stock trades for $45 per share. A call option on that stock has a strike price of $50 and an expiration date of 1 year in the future.

The volatility of the stock's returns is 30%, and the risk free rate is 2%. What is the Black and Scholes value of this option?

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Financial Management: A stock trades for 45 per share a call option on that stock

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