Assignment:
Parameters
Strike price = $120;
Expiration time = 1 year;
Annual interest rate = 0.05;
Stock volatility = 0.35.
For the initial stock price, S0 = 100.45
Q1. Find the price of the call option by the Black-Scholes formula rounded to the nearest cent.
Provide complete and step by step solution for the question and show calculations and use formulas.