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2. Suppose the market price of a European call option on a non-dividend paying stock is $1.89 when S0=21,K=20,r=0.1, and T=0.25. What is the implied
2. Suppose the market price of a European call option on a non-dividend paying stock is $1.89 when S0=21,K=20,r=0.1, and T=0.25. What is the implied volatility? What is the process of finding the implied volatility? If implied volatility is 24%, what are the fair prices of the put option using both Black-Scholes equation and put-call parity
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