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Present market price of the share is SR 4 1 5 . A 3 month call option at an exercise price of SR 4 0

Present market price of the share is SR 415. A 3 month call option at an exercise
price of SR 400; the continuously compound risk free interest rate is 5% p.a. volatility
(standard deviation)0.22 or 22%. Using Black & Scholes Model, determine the value of call
option and put option.

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