# Find the price of the call option by the Black-Scholes

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Parameters

Strike price = $120;

Expiration time = 1 year;

Annual interest rate = 0.05;

Stock volatility = 0.35.

For the initial stock price, S0 = 100.45

Requirements

1. Find the price of the call option by the Black-Scholes formula rounded to the nearest cent.

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#### Solution Summary

This solution uses the Black-Scholes to find the price of the call option.

$2.49