Question

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given the following information, what is the value of the corresponding call and put options? stock...

given the following information, what is the value of the corresponding call and put options? stock price (P) is $35.60, exercise price (EX) is $50, time to expiry is nine months, royalty-free rate (rRF) is 3.25%, standard deviation is 45%, and d1 is -0.78921

Solutions

Expert Solution

Value of Call = $1.84

Value of Put = $15.03

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