Common stock traded in the market


Question:

Cola Company has call options on its common stock traded in the market. The options have an exercise price of $45 and expire in 156 days. The current price of the Cola stock is $44.375. The risk-free rate is $7% per year and the standard deviation of the stock returns is 0.31. The value of [d1] is (approximately)?

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Finance Basics: Common stock traded in the market
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