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A stock is currently priced at $73 and will move up by a factor of 1.20 or down by a factor of .85 over the

A stock is currently priced at $73 and will move up by a factor of 1.20 or down by a factor of .85 over the next period. The risk-free rate of interest is 3 percent.

  1. What is the value of a call option with a strike price of $75?
  2. What is the value of a put option with a strike price of $75?

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