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Problem 1. Use the same argument we used in lecture for the European style Call option to derive the Black-Scholes formula for the European style
Problem 1. Use the same argument we used in lecture for the European style Call option to derive the Black-Scholes formula for the European style Put option: P(t,St)=Ker(Tt)(d2)Ste(Tt)(d1) where d1=Ttlog(St/K)+(r+212)(Tt),d2=d1Tt
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