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Stock price= $83 Exercise price= $80 Risk-free rate= 6% per year, compounded continuously Maturity= 6 months Standard deviation= 47% per year (a) What is the

Stock price= $83 Exercise price= $80 Risk-free rate= 6% per year, compounded continuously Maturity= 6 months Standard deviation= 47% per year

(a) What is the intrinsic value of the call option? (0.5 pts.) (b) What is the time value of the call option? (0.5 pts.)

Please do not use excel. Show steps. Thanks!

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