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The current price of one share of ABC stock is 40. The stock pays dividends continuously at a rate of 4% per year. The continuously

The current price of one share of ABC stock is 40. The stock pays dividends continuously at a rate of 4% per year. The continuously compound risk-free interest rate is 5% and the stocks volatility is 25%. Use the Black-Scholes model to determine the price of a call option and a put option on the stock. Both options have a strike price of 45 and expire in one year.

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