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Please show all work, will rate A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S
Please show all work, will rate
A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X = $30, r = 5% p.a., o = 30% p.a., T = 12 months. Find the premium of this option, rounded to 2 decimals (e.g., 1.15; do NOT include a dollar sign in your answer). NOTE: Use the continuous time version of the Black- Scholes and Put-Call Parity equations (i.e., do NOT use the book's version). A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X = $30, r = 5% p.a., o = 30% p.a., T = 12 months. Find the premium of this option, rounded to 2 decimals (e.g., 1.15; do NOT include a dollar sign in your answer). NOTE: Use the continuous time version of the Black- Scholes and Put-Call Parity equations (i.e., do NOT use the book's version)Step by Step Solution
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