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Consider a stock that pays dividends of $5 one month from now. The stock currently trades for $46 per share. The annual continuously compounded risk-free interest rate is 8%, and the annual price volatility relevant for the Black-Scholes equation is 39.24%. Find the Black-Scholes price of a call option with strike price $45 and expiration time of three months.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92651029

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