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5. a. Assuming the following values for a European call option, calculate the theoreti- cal option price using the Black-Scholes model: Strike price = $100.
5. a. Assuming the following values for a European call option, calculate the theoreti- cal option price using the Black-Scholes model: Strike price = $100. Current stock price = $100. Dividend = $0. Short-term risk-free rate = 8%. Expected return volatility = 20%. Time to expiration = 91 days. b. What is the intrinsic value and time premium for this call option
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