14. A call option with X = $50 on a stock currently priced at S = $55...
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14. A call option with X = $50 on a stock currently priced at S = $55 is selling for $10. Using a volatility estimate of σ = .30, you find that N(d1) = .6 and N(d2) = .5. The risk-free interest rate is zero. Is the implied volatility based on the option price more or less than .30?
Explain.
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