A stock trades for $46 per share. A call option on that stock has a strike price of $53 and an expiration date twelve months in the future. The volatility of the stock's returns is 38%, and the risk-free rate is 4%. What is the Black and Scholes value of this option?
The answer is $5.08. Please show your work in Excel
Difference due to not rounding off intermediate calculations.
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