# Black Scholes equation application [closed]

I have gone through quite a few exercises using Black-Scholes equation (or formula as you wish to call it). However, I am not quite understand the following question:

A stock is currently selling at $S_0= \$92$and that the risk-free continuously compounded annual rate is$r=0.018$. Suppose that the exercise price is$K=\$98$ and the volatility of annual log-returns is $\sigma=0.2$.

If one quarter from now, the stock price is $\$95\$, what is the price of the call?

Any hints would be greatly appreciated.

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 Did you even try to do your homework? – chrisaycock♦ Aug 20 '12 at 13:00

## closed as off topic by chrisaycock♦Aug 20 '12 at 13:00

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