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You are given the following information concerning options on a particular stock: Stock price = $ 6 2 Exercise price = $ 6 0 Risk

You are given the following information concerning options on a particular stock:
Stock price = $62
Exercise price = $60
Risk-free rate =3% per year, compounded continuously
Maturity =6 months
Standard deviation =36% per year
a.
What is the intrinsic value of each option? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)
b. What is the time value of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)

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