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A) Use the Black-Scholes formula to find the value of a call option on the following stock: Time to expiration: 6 months standard deviation: 50%

A)

Use the Black-Scholes formula to find the value of a call option on the following stock:

Time to expiration: 6 months

standard deviation: 50% per year

Exercise price: $50

Stock price: $50

Interst rate: 3%

B) Find the Black-Scholes value of a put option on the stock in the previous problem with the same exercise price and expiration as the call option.

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