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Use the following information to find the value of a call option using the Black-Scholes option pricing model: S = 164 E = 165 T
Use the following information to find the value of a call option using the Black-Scholes option pricing model: S = 164 E = 165 T = .0959 years r = 5.21% SD = .29. Assume the actual price of this option is 5 1/2. Show how you could lock in a profit regardless of whether the stock price moves up or down by $1 per share.
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