Tag The current price of a stock is $50 the annual risk-free rate is 6% and a 1-year call option with a strike price of $55 sells for $7.20

Use the Black-Scholes model to find the price for a call option with the following inputs: (1) current stock price is $32, (2) strike price is $35, (3) time to expiration is 6 months, (4) annualized risk-free rate is 3%,…