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You are given the tollowing intormation concerning options on a particular stock: Stock price = $ 8 4 Exercise price = $ 5 9 Risk
You are given the tollowing intormation concerning options on a particular stock:
Stock price
$
Exercise price
$
Riskfree rate
per year, compounded continuously
Maturity
months
Standard deviation
per year
What is the intrinsic value of the call option? Of the put option? What is the time value of the call option? Of the put option?
Put option intrinsic value:
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