Use the Black-Scholes model to price the following: A call option on a stock whose current price

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Use the Black-Scholes model to price the following:

A call option on a stock whose current price is 50, with exercise price X = 50, T = 0.5, r = 2%, σ

= 25%.

A put option with the same parameters.

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Financial Modeling

ISBN: 9780253337825

5th Edition

Authors: Simon Benninga, Tal Mofkadi

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