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You are given the following information concerning options on a particular stock: Stock price = $66 Exercise price = $60 Risk-free rate = 3% per

You are given the following information concerning options on a particular stock:

Stock price = $66

Exercise price = $60

Risk-free rate = 3% per year, compounded continuously

Maturity = 3 months

Standard deviation = 41% per year

a. What is the intrinsic value of each option? Do not round intermediate calculations.

b.What is the time value of each option? Do not round intermediate calculations.

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