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The current price of a stock is 46. You wish to buy 200 44-strike six-month European call options on the stock. You are given (1)

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The current price of a stock is 46. You wish to buy 200 44-strike six-month European call options on the stock. You are given (1) 8 = 0.02. (ii) = 0.25 (iii) The continuously compounded risk-free interest rate is 0.05. Calculate the price of the block of 200 options. Possible Answers A Less than 750 B At least 750 but less than 800 At least 800 but less than 850 D At least 850 but less than 900 E At least 900

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