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  3. let s = $64, s = 29%, and r = 7.5% (continuously c

Let S = $64, s = 29%, and r = 7.5% (continuously compounded). The stock...

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Finance

Let S = $64, s = 29%, and r = 7.5% (continuously compounded). The stock is set to pay a single dividend of $0.40 six months from today, with no further dividends expected this year. Use the Black-Scholes model (adjusted for the dividend) to compute the value of a one-year $60-strike European call option on the stock.

Option D is correct, but how? Can you provide solution for Excel? formulas and steps or actual excel work sheet please?
Answers: a.

$11.84
b.

$10.63
c.

$3.61
imaged.

$11.56
e.

$3.51

Answer & Explanation Solved by verified expert
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