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Stock ABCD is currently trading for $24.35. A European put option with a strike price of $25.00 will expire in 12 days. The volatility of

Stock ABCD is currently trading for $24.35. A European put option with a strike price of $25.00 will expire in 12 days. The volatility of the underlying stock is 40% and the risk-free interest rate is 3%. A. What is the Black-Scholes price of the European put option? B. Determine the time value of the put option and interpret your answer.

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