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A non-dividend-paying stock sells for $42 per share. The continuously compounded risk-free interest rate is 6% per annum, and the volatility of the stock price is 30% per annum. Use the Black-Scholes-Merton model to determine the price of a 3-month European call on the stock with a strike price of $40.

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Category:- Basic Finance
Reference No.:- M942796

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