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You are given the following information on some company's stock, as well as the risk- free asset. Use it to calculate the price of the
You are given the following information on some company's stock, as well as the risk- free asset. Use it to calculate the price of the call option written on that stock, as well as the price of the put option. (HINT: You should use the Black-Scholes formula!) (Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) Today's stock = $84 price Exercise price = $80 Risk-free rate= Option maturity = 4 months Standard deviation of annual stock returns 4.9% per year, compounded continuously Call price Put price 63% per year
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