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7. (10 points) The current stock price is $100. The stock pays no dividend, and the interest rate is 0. The stock has a volatility
7. (10 points) The current stock price is $100. The stock pays no dividend, and the interest rate is 0. The stock has a volatility of 20%. The option has an N(d2)=.62 and a strike of $90.
- Price the one-year at the money call option above using the Black Scholes formula.
2. Price the one-year at the money put option with the above information
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