Given the following data stock price 50 exercise price 45, Financial Management

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Given the following data stock price 50 exercise price 45

Given the following data: Stock price = $50; Exercise price = $45; Risk-free rate = 6%; variance = 0.2 ; Expiration = 3 months. Calculate value of a European call option: [Use Black-Scholes Formula]. Please show step by step so I can understand how to do the problem myself.

A) $7.62

B) $7.90

C) $5.00

D) None of the above

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Financial Management: Given the following data stock price 50 exercise price 45

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Financial Management: Given the following data stock price 50 exercise price 45

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