You are given the following information concerning options on a particular stock: Stock price = $62 Exercise

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You are given the following information concerning options on a particular stock:
Stock price = $62
Exercise price = $65
Risk-free rate = 6% per year, compounded continuously
Maturity = 6 months
Standard deviation = 47% per year
a. What is the intrinsic value of the call option? Of the put option?
b. What is the time value of the call option? Of the put option?
c. Does the call or the put have the larger time value component? Would you expect this to be true in general?

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