Question Assume the Black-Scholes framework. You are given the following information about two stocks X and Y: Underlying asset Stock X Stock Y Current price 50 160 Expected rate of return 8% 6% Continuous dividend rate 4% 3% Volatility o 0.70 You are also given that the continuously compounded risk-free rate is 4%, and the price of a 1-year at-the-money call option on X is 4.59. Determine the price of a 2-year at-the-money put option on Y. Possible Answers A Less than 2 B At least 2 but less than 4 C At least 4 but less than 6 D At least 6 but less than 8 E At least 8 Question Assume the Black-Scholes framework. You are given the following information about two stocks X and Y: Underlying asset Stock X Stock Y Current price 50 160 Expected rate of return 8% 6% Continuous dividend rate 4% 3% Volatility o 0.70 You are also given that the continuously compounded risk-free rate is 4%, and the price of a 1-year at-the-money call option on X is 4.59. Determine the price of a 2-year at-the-money put option on Y. Possible Answers A Less than 2 B At least 2 but less than 4 C At least 4 but less than 6 D At least 6 but less than 8 E At least 8