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Derivatives: Given that X = $270. T = 1.12 year, = 0.19, r = 6%, compute the call and put price for the stock price
Derivatives:
Given that X = $270. T = 1.12 year, = 0.19, r = 6%, compute the call and put price for the stock price listed below in the following tables, using the BS formula. Then draw the graphs and describe the relationship between call (or put) price and stock price (two graphs needed: one for call and one for put).
Stock price | Call price | Stock price | Put price | |
250 | 250 | |||
255 | 255 | |||
260 | 260 | |||
265 | 265 | |||
270 | 270 | |||
275 | 275 | |||
280 | 280 | |||
285 | 285 | |||
290 | 290 |
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