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Assume the following for a stock and a call and a put option written on the stock. EXERCISE PRICE = $25 CURRENT STOCK PRICE =

Assume the following for a stock and a call and a put option written on the stock.

EXERCISE PRICE = $25

CURRENT STOCK PRICE = $22

VARIANCE = .25

TIME TO EXPIRATION = 6 MONTHS

RISK FREE RATE =2%

Use the Black Scholes procedure to determine the value of the call option and the value of a put.

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