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Financial Theory and Corporate Policy (4th Edition)chapter 7 Solution Essay Preview: Financial Theory and Corporate Policy (4th Edition)chapter 7 Solution Report this essay Chapter 7 Pricing Contingent Claims: Option Pricing Theory and Evidence 1. We can use the Black-Scholes formula (equation 7.36 pricing European calls. = − −rfT 1 2 C SN(d ) Xe N(d.