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A pharmaceutical companys stock is trading at $40. The results of a highly anticipated drug trial are expected to be announced in the morning, and

A pharmaceutical companys stock is trading at $40. The results of a highly anticipated drug trial are expected to be announced in the morning, and the stock could either double or halve when the news is released. Should we expect the Black-Scholes model to give us a reasonable price on an option with two weeks left to expiration? Explain your answer

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