Question 18/25 (1) Answers A non-dividend paying stock is currently trading at USD 45 and has an expected return of 10%

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Question 18 25 1 Answers A Non Dividend Paying Stock Is Currently Trading At Usd 45 And Has An Expected Return Of 10 1 (71.45 KiB) Viewed 58 times

Question 18/25 (1) Answers A non-dividend paying stock is currently trading at USD 45 and has an expected return of 10% per year. Using the Black-Scholes- Merton (BSM) model, what is the value of 6- months, European-style Call option on the stock, if the parameters used in the model are: So=45, K=40, r=0.1, volatility=0.2? O $7.29 O $ 9.37 O $ 1.19 O $2.87