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Use the Black-Scholes Option Pricing Model for the following option. Stock price S0 =...

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Finance

Use the Black-Scholes Option Pricing Model for the following option.

Stock price S0 = $80;

Time to Maturity T = 1 year;

Risk free rate r = 10% annually;

Standard deviation STD = 20% per year.

No dividends will be paid before option expires.

Find the Black-Scholes value of a call option with an exercise price of $90 on the above stock?

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