You are given the following information on some company's stock, as well as the risk-free...
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Finance
You are given the following information on some company's stock, as well as the risk-free asset. Use it to calculate the price of the call option written on that stock, as well as the price of the put option. (HINT: You should use the Black-Scholes formula!) (Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.)
Today's stock price
=
$72
Exercise price
=
$70
Risk-free rate
=
4.3% per year, compounded continuously
Option maturity
=
4 months
Standard deviation of annual stock returns
=
61% per year
call price: ?
put price: ?
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