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The current price of a stock is $ 2 0 and over the next three months it is expected to move up to $ 2

The current price of a stock is $20 and over the next three months it is expected to move up to $22 or down to $19. If the continuously compounded three month risk free rate is 4.5%, what is the price of a three month European call option on the stock with strike K = $20? What is the price of the corresponding European put?

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