Use the Black-Scholes option pricing model to price a one-year
at the money call option on a stock that is trading at $50 per
share, Rf is 5%, annual volatility is 25%. REMEMBER TO USE THE
NORMAL PROBABILITY DOCUMENT posted on moodle. You are not allowed
to use Excel, you can only use your financial calculator. Show all
your work, including intermediate steps. Simply writing the final
answer will not get credit, even if the answer is correct.
a) What...