1 point) Consider a stock with an initial price of $90. Suppose that the risk-free...
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1 point) Consider a stock with an initial price of $90. Suppose that the risk-free rate of interest compounded continuously is 3%. The table below contains no-arbitrage prices of three European call options that expire in 8 months Call Value $7.25 $6.16 $5.19 Find the no-arbitrage values of the following European-style derivatives that have the same expiry date of 8 months (round all answers to the nearest penny). (a) A standard European put option with strike K 88. Value $ (b) A standard European put option with strike K 90 Value $ (c) A standard European put option with strike K = 92. Value $
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