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A stock price is currently $130. Over each of the next two four-month periods it is expected to go up by 15% or down by

A stock price is currently $130. Over each of the next two four-month periods it is expected to go up by 15% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. (All calculations keep four digits after the decimal point) 1. What is the value of an eight-month European call option with a strike price of $133? 2. What is the value of an eight-month American put option with a strike price of $133?

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