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Compute the call and put prices for a stock option

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Using BSMbin8e.xls, compute the call and put prices for a stock option, where the current stock price is $100, the exercise price is $100, the riskfree interest rate is 0 percent (continuously compounded), the volatility is 30 percent, and the time to expiration is 1 year. Explain the observed relationship between the call and put price. Further explain the relationship between your results here and the previous question

Reference no: EM131291083

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