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A stock price has an expected return of 20% and a volatility of 38%. The current price is $50. a) What is the probability that

A stock price has an expected return of 20% and a volatility of 38%. The current price is $50. a) What is the probability that a European call option on the stock with an exercise price of $50 and a maturity date in six months will be exercised? b) What is the probability that a European put option on the stock with the same exercise price and maturity will be exercised?

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