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Compute the price of the cell

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Rebecca is interested in purchasing a European call on a hot new stock. Up. Inc. The call has a strike price of $97.00 and expires in 95 days. The current price of Up stock is $121.96, and the stock has a standard deviation of 41% per year. The risk-free Interest rate ls 6.07% per year. Up stock pays no dividends. Use a BBS-day year. 8. Using the Ellack-Scholes formula, compute the price of the call. I). Use put-call parity to compute the price of the put with the same strike and expiration date. (Note: Make sure to round all intermediate calculations to at least ?ve decimal places.)

a. Using the Black-Scholes formula, compute the price of the cell. The price of the cell is $|:|. (Round to two decimal places.)

Reference no: EM133073801

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