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A firm's stock sells at $50. The stock price will either be $65 or $45 three months from now. Assume the 3-month risk-free rate is

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A firm's stock sells at $50. The stock price will either be $65 or $45 three months from now. Assume the 3-month risk-free rate is 1%. (a) What is the price of a European call with a strike price of $50 and a maturity of three months? (b) What is the price of a European call with a strike price of $55 and a maturity of three months? (c) What is the price of a European put with a strike price of $50 and a maturity of three months

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