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2. Use the Black- Scholes formula to find the value of a call option on the following stock: Time to expiration = 6 months; Standard

2. Use the Black- Scholes formula to find the value of a call option on the following stock: Time to expiration = 6 months; Standard deviation = 50% per year Exercise price = $ 50 Stock price = $ 50 Interest rate = 3% Find the value of a put option on the stock in the above problem with the same exercise price and expiration as the call option.

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