Assume that the current price of DEY share is $25,that a 1-year call option on the share 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√T)d2 = d1 - σ√TPlugging in the given values, we get:d1 = (ln(25/27.5) + (0.04 + 0.25^2/2)*1) / (0.25*√1) = 0.5476d2 = 0.5476 - 0.25*√1 = 0.4432C = 25 * 0.5476 - 27.5 * e^(-0.04*1) * 0.4432 = $1.98

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