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Find the value of a call option on the stock

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Reference no: EM132651302

1. Use the Black-Scholes formula to find the value of a call option on the following stock: Time to expiration = 6 months Standard deviation = 50% per year Exercise price = $50 Stock price = $50 Interest rate = 10%

2. Find the Black-Scholes value of a put option on the stock in the previous problem with the same exercise price and expiration as the call option.

Reference no: EM132651302

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