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Please show formulas and calculations and not just results and numbers, and explain rationale for answers. Whenever applicable, interest is compounded annually and payments occur at the end of the period. Face value for bonds is $1000.

Use Black-Scholes to find the price for a call with 1 month to maturity. The exercise price is 47. The annual risk-free interest rate is 4%. The stock price is $45. The historic variance is .0256.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92313502

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