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Please use the Black-Scholes formula for this, and assume log normal model if needed. 4. The current spot price of a stock is $68 and
Please use the Black-Scholes formula for this, and assume log normal model if needed.
4. The current spot price of a stock is $68 and the volatility of the stock is 14%. The risk-free rate is 2%. Compute the price of a straddle on the stock with strike $70 and expiration in 1 year built from a Europeain call and put. t70Step by Step Solution
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