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Price a 6 month call option with a strike price of $40.00, assuming an annual standard deviation of 30% on returns, a risk-free rate of
Price a 6 month call option with a strike price of $40.00, assuming an annual standard deviation of 30% on returns, a risk-free rate of 5%, and a current stock price of $41.25. Price the associated put using put-call parity. Reprice both options after changing the risk-free rate to 6%.
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