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ALL PARTS SHOULD BE ANSWERED. SPECIAL FOCUS B PART AND D PART. (A, C PART JUST ANSWERS ENOUGH, NO NEED OF EXPLAINATION. Finance price in

image text in transcribedALL PARTS SHOULD BE ANSWERED. SPECIAL FOCUS B PART AND D PART.

(A, C PART JUST ANSWERS ENOUGH, NO NEED OF EXPLAINATION.

Finance price in our returnertice Consider an option on a non dividend paying stock when the stock price is $35, the exercise price is $31, the risk free interest rate is 4% per annum, the volatility is 20% per annum, and the time to maturity is four months. a.What is the price of the option if it is a European call? b. What is the price of the option if it is an American call? c. What is the price of the option if it is a European put? d. Verify that put call parity holds

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