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a . Suppose that a stock has current price of $ 1 5 . It is expected that in 4 months, the value of the
a Suppose that a stock has current price of $ It is expected that in months, the value of the stock would either be $ or $ A months call option with strike price of $ on the stock is being initiated today. If the interest rates are per annum for months continuously compounded then, what is the price of the call option today?
b What is the price of the option if its a months put option with strike price $
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