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

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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 = 10%, σ = 25%.

• A put option with the same parameters.

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Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

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