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Question 7: The underlying stock for a European exchange option has S = $27.15, div= 2.0%, and o=0.18. The strike stock has S = $30.00,

Question 7: The underlying stock for a European exchange option has S = $27.15, div= 2.0%, and o=0.18. The strike stock has S = $30.00, div = 0.0%, and o=0.22. The two stocks have a correlation coefficient of 0.73. If the exchange option expires in 2 years, what is the price of the call using a Black-Scholes approach? Question 7: The underlying stock for a European exchange option has S = $27.15, div= 2.0%, and o=0.18. The strike stock has S = $30.00, div = 0.0%, and o=0.22. The two stocks have a correlation coefficient of 0.73. If the exchange option expires in 2 years, what is the price of the call using a Black-Scholes approach

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