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On May 22, 1998, Intel was selling at 74.625. Use the Black–Scholes formula to compute the value…


On May 22, 1998, Intel was selling at 74.625. Use the Black–Scholes formula to compute the value of a January 2000 call (t = 1.646 years) with strike 100, assuming the interest rate was r = 0.05 and the volatility σ = 0.375.