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(20 points) The current price of Tyson Foods Inc stock is $48.71. The interest rate is 10% a year. A one-year call option on Tyson
(20 points) The current price of Tyson Foods Inc stock is $48.71. The interest rate is 10% a year. A one-year call option on Tyson Foods Inc stock has an exercise price of $55 and a premium of $9.74. a. Using the information provided and the Black-Scholes model compute the stock's implied volatility. b. Using the implied risk computed in part (a) and the Black-Scholes model compute the two-year call premium for an exercise price at $60
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