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The following information is given about options on the stock of a certain company: S0 = $50 K = 50 r = 10% per annum
The following information is given about options on the stock of a certain company: S0 = $50 K = 50 r = 10% per annum T = 3 months = 30% per annum Dividend = $1.50 expected in two months What is the price of a European call and a put option? Note that N(d1) = 0.5168 N(d2) = 0.4570
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