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Use Black-Scholes model to price a European call option

Use the Black-Scholes formula to find the value of a call option based on the following inputs. [Hint: to find N(d1) and N(d2), use Excel normsdist function.] (Round your final answer to 2 decimal places. Do not round intermediate calculations.)


Stock price	$	54
Exercise price	$	63
Interest rate		0.08
Dividend yield		0.04
Time to expiration		0.50
Standard deviation of stock's returns		0.26

Call value $__________

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Financial Management, Finance

Category:- Financial Management
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