What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)Stock price=$76Exercise price=$75Risk-free rate=4.50% per year, compounded continuouslyMaturity=4 monthsStandard deviation=63% per year Call price$ Put price$

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What are the prices of a call option and a put option with the following characteristics?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 5P

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Question

What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Stock price	=	$76
Exercise price	=	$75
Risk-free rate	=	4.50% per year, compounded continuously
Maturity	=	4 months
Standard deviation	=	63% per year


Call price	$
Put price	$

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