Assume that the current price of DEY stock is $25,that a 1 year call option on the stock has a strike or exercise price of $27.50,the risk free rate is 4%,and that you have calculated N(d₁)as .5476 and N(d2)as .4432.Use the Black-Scholes model to calculate the price of the option.

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The Black-Scholes model is given by:C = S * N(d1) - X * e^(-rT) * N(d2)where:C is the price of the call optionS is the current price of the stockX is the strike price of the call optionr is the risk-free rateT is the time to expiration of the call optiond1 = (ln(S/X) + (r + σ^2/2) * T) / (σ * sqrt(T))d2 = d1 - σ * sqrt(T)Plugging in the given values, we get:C = 25 * 0.5476 - 27.50 * e^(-0.04 * 1) * 0.4432C = 13.69 - 11.71C = $1.98

Assume That the Current Price of DEY Stock Is $25,that