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2. S = $80, X = $50, r = 2%, T = 9 months, and a. Find the values of the call and put options,

2. S = $80, X = $50, r = 2%, T = 9 months, and image text in transcribed

a. Find the values of the call and put options, their intrinsic values and time premiums.

b. Why does the call option not have a negative time premium? Hint: The call option is deep in the money.

=0.15

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