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Consider the case when the volatility approaches zero. (a) If S is the current stock price, discuss by reasoning (without using the B-S formula) what

Consider the case when the volatility approaches zero. (a) If S is the current stock price, discuss by reasoning (without using the B-S formula) what the value of the call option today should be. (b) Show that the value in (a) is consistent with the Black-Scholes formula.

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