What is the price of the option if is a european call

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Reference no: EM132942256

Consider an option on a non-dividend-paying stock when the stock price is $30, the exercise price is $29, the riskfree interest rate is 5% per annum, the volatility is 25% per annum, and the time to maturity is four months.

Problem a: What is the price of the option if it is a European call?

Problem b: What is the price of the option if it is an American call?

Reference no: EM132942256

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