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You are given the following information concerning options on a particular stock: Stock price = $51 Exercise price = $50 Risk-free rate = 5% per
You are given the following information concerning options on a particular stock: Stock price = $51 Exercise price = $50 Risk-free rate = 5% per year, compounded continuously Maturity = 6 months Standard deviation = 38% per year. What is the time value of each option?
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