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Problem 7. Suppose that the volatility of an asset will be 20% from month 0 to month 6, 25% from month 6 to month 18,

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Problem 7. Suppose that the volatility of an asset will be 20% from month 0 to month 6, 25% from month 6 to month 18, and 30% from month 18 to month 24. What volatility should be used in Black-Scholes-Merton to value a two-year option

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