Strike price = $120;
Expiration time = 1 year;
Annual interest rate = 0.05;
Stock volatility = 0.35.
For the initial stock price, S0 = 100.45
1. Find the price of the call option by the Black-Scholes formula rounded to the nearest cent.© BrainMass Inc. brainmass.com March 4, 2021, 11:53 pm ad1c9bdddf
This solution uses the Black-Scholes to find the price of the call option.