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show detail and formula Thank you! 6. You are given the following information concerning options on a particular stock: Stock price -$83 Exercise price$80 Risk-free
show detail and formula Thank you!
6. You are given the following information concerning options on a particular stock: Stock price -$83 Exercise price$80 Risk-free rate -600 per year, compounded continuously Maturity6 months Standard deviation 53% per year a. What is the intrinsic value of the call option? Of the put option? b. What is the time value of the call option? Of the put option? c. Does the call or the put have the larger time value component? Would you expect this to be true in generalStep by Step Solution
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