Business, 27.08.2019 00:20 acaciafiedler2003

The stock price five months from the expiration of an option is $42, the exercise price of the option is $40, the continuously compounded risk-free interest rate is 11% per annum, and the volatility () is 21% per annum. a. calculate the price of the option if it is a european call. b. calculate the price of the option if it is a european put.

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The stock price five months from the expiration of an option is $42, the exercise price of the optio...

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