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Consider a European call option that is valued at $7 with a strike of $105 and maturity of 1.5 years. The underlying security is currently
Consider a European call option that is valued at $7 with a strike of $105 and maturity of 1.5 years. The underlying security is currently trading at $100. If the continuously compounded risk-free rate is 5%, then the implied volatility of the underlying security is closest to: 12% 10% 7% 5% 15%
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