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Answer questions 2 and 3 based upon the following information: Current stock price of underlying asset Standard deviation of returns of underlying asset Strike price

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Answer questions 2 and 3 based upon the following information: Current stock price of underlying asset Standard deviation of returns of underlying asset Strike price of call option Time to expiry of call option Price of call option Risk-free rate - $50 40% = $40 -9 months - $13.44 -5% The price of a corresponding put option is closest to Q2. a. $2 b. $4 c. $ d. $8 The time premium of the call option is closest to Q3. a. $3.4 b. $5.7 C. d. $9.8

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