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Price of a stock is six months before an expiration of European option 42 EUR, the strike price is 40 EUR, risk-free interest rate is
Price of a stock is six months before an expiration of European option 42 EUR, the strike price is 40 EUR, risk-free interest rate is 10% per annum and standard deviation of it is 20% per annum.
Calculate the call and put option price and draw option payoff diagram.
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