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A stock is currently selling for $27. A 9-month put option has a strike price of $30. The risk-free rate is 4 percent and the

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A stock is currently selling for $27. A 9-month put option has a strike price of $30. The risk-free rate is 4 percent and the market rate is 9.5 percent. 1. Using Black Scholes what is the option premium on the 9-month put with a $30 strike price? Assume the options are European style. 2. What is the intrinsic value of the option? 3. What is the time value of the option? A stock is currently selling for $27. A 9-month put option has a strike price of $30. The risk-free rate is 4 percent and the market rate is 9.5 percent. 1. Using Black Scholes what is the option premium on the 9-month put with a $30 strike price? Assume the options are European style. 2. What is the intrinsic value of the option? 3. What is the time value of the option

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