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5. (10 points) The price of a one year at the money European call on Ryan Industries stock is 14.6406. The stock currently sells for

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5. (10 points) The price of a one year at the money European call on Ryan Industries stock is 14.6406. The stock currently sells for 100. The risk free continuously compounded interest rate is 8%. Ryan Industries pays a dividend at a continuous rate of 8%. Calculate the implied volatility. Since this is an at the money European call the stocks exersise prise is also its current price Answer 0.4

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