Use the B-S OPM to calculate the value of a call option with the following data:
Price of the underlying stock = $30; strike price = $35; risk-free rate of return = 5%; variance of the stock returns = .25; and time to expiry of the call option is 4 months.
Here is a link to the standard normal distribution table. At your discretion, you may use this link if you choose to use the table. However, I suggest you use Excel for this purpose. The Excel operation is =normsdist(x) where x is the value you would be using if you used the table.
Sample Solution