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What is the price of a European call option on a non-dividend-paying stock when the stock...

What is the price of a European call option on a non-dividend-paying stock when the stock price is $52, the strike price is $50, the risk-free interest rate is 12% per annum, the volatility is 30% per annum, and the time to maturity is three months? (Hint: Remember Black- Sholes-Merton Model. Please refer to the N(d) tables provided to you to pick the N values you need)

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Data provided:

  Sr.      Factor      Denotation      Value   
  1      Stock Price      S      $52   
  2      Strike Price      K      $50   
  3      Risk free interest rate      r      12% p.a.   
  4      Volatility      sigma      30% p.a.   
  5      Time to maturity      t      3 months   

jeff jeffy answered 1 year ago
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