Use the Black-Scholes model to calculate the theoretical value of a DBA December 45 call option. Assume that the risk free rate is 6 percent, the stock has a variance of 36 percent, there are 91 days until expiration of the contract, and DBA stock is currently selling at $50 in the market.

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The Answer of Use the Black-Scholes model to calculate the theoretical value of a DBA December 45 call option. Assume that the risk free rate is 6 percent, the stock has a variance of 36 percent, there are 91 days until expiration of the contract, and DBA stock is currently selling at $50 in the market.

Use the Black-Scholes Model to Calculate the Theoretical Value of a DBA