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Math in Finance problem thanks! 4 Using Black-Scholes find the price of a European call option on a non-dividend paying stock when the stock price
Math in Finance problem thanks!
4 Using Black-Scholes find the price of a European call option on a non-dividend paying stock when the stock price is $69, the strike price is 70, the risk-free interest rate is 12% per annum, the volatility is 30% per annum, and the time to maturity is three months? What is the value of a put using theses parameters (use put-call parity)? What happens to the price of the call if volatility is 10% and 50%? Show the prices at these volatilitiesStep by Step Solution
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