The risk-free rate is 5 percent per year compounded, Financial Management

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The risk-free rate is 5 percent per year compounded

A call option matures in six months. The underlying stock price is $80, and the stock's return has a standard deviation of 33 percent per year. The risk-free rate is 5 percent per year, compounded continuously. If the exercise price is $0, what is the price of the call option?

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Financial Management: The risk-free rate is 5 percent per year compounded

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Financial Management: The risk-free rate is 5 percent per year compounded

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