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Assume the lognormal model and BS framework, problem in attachment The stock of XYZ currently sells for 41 per share. The annual stock price volatility

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Assume the lognormal model and BS framework, problem in attachment

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The stock of XYZ currently sells for 41 per share. The annual stock price volatility is 0.3, and the annual continuously compmmded risk-free interest rate is 0.08. The stock pays no dividends. (3) Find the BlackScholes price of a. call option on the stock with strike price 40 and time to expiration of 3 months. C: (b) Find the BlackScholes price of a. put option on the stock with strike price 40 and time to expiration of 3 months

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