Calculate the implied volatility of the underlying stock

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Reference no: EM132037016

A stock currently trades at $50. It pays dividends at a rate 2%, and the risk-free rate is also 2%. a 3-month call option with a strike price of $50 is trading at $2.

A) Calculate the implied volatility of the underlying stock.

B) Calculate the volatility of the call option.

Reference no: EM132037016

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