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Suppose that a stock is currently selling at $80 and that the risk-free continuously compounded annual rate is 0.03. a. What is the price of

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Suppose that a stock is currently selling at $80 and that the risk-free continuously compounded annual rate is 0.03. a. What is the price of a call option on this stock with an expiration date of T = 1 (time in years) and with an exercise price of $85? Assume that the volatility of annual log-returns is sigma = 0.25

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