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In: Finance

You are given the following information concerning options on a particular stock:    Stock price =...

You are given the following information concerning options on a particular stock:

  

Stock price = $76
Exercise price = $75
Risk-free rate = 6% per year, compounded continuously
Maturity = 6 months
Standard deviation = 31% per year

  

a.

What is the intrinsic value of each option? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)

   

Value
  Call option $   
  Put option $   

  

b.

What is the time value of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

  

Value
  Call option $   
  Put option $   

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