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Nowel Inc Stock Is Currently Priced at $42

Question 95

Multiple Choice

Nowel Inc. stock is currently priced at $42. The present value of the strike price of a call option on this stock is $44. N(d1) , as calculated by the Black Scholes option pricing model is .6541; N(d2) is .3722. The value of this option as calculated by Black-Scholes is


A) $(2.00) .
B) $11.10.
C) $2.000.
D) $10.71.

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