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10. Use the Black-Scholes Option Pricing Model and put-call parity to estimate the value of the call and put options below, along with the intrinsic

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10. Use the Black-Scholes Option Pricing Model and put-call parity to estimate the value of the call and put options below, along with the intrinsic value and time value for each. Input: Stock price (S) 28.0000 Exercise price (X) 25.0000 Time to expiration (T) 0.6400 Risk-free rate (R) 2.000% Annualized std. dev. (SIGMA) 40.00% The call price, given the above inputs, is C = $5.26. a) Calculate the put premium, P using put-call parity b) Calculate the put intrinsic value, IV

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