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2 ) What is the B - S value of a European put if S = 3 6 , K = 4 0 ; T

2)

What is the B

-

S value of a European put if S

= 36,

= 40

; T

= 3

months; Expected Volatility

= 18 %

and r

= 1 % ?

What is the intrinsic value and the time value of that put

?

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