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Computation of value of call option and put option

Stock in the Nantucket Corporation is currently selling for $25 per share. In one year, the price will be either $20 or $30. T-bills with one year to maturity are paying 10 percent. What is the value of following options?

(a) A call option with a strike price of $26?

(b) A put option with a strike price of $26?

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Category:- Basic Finance
Reference No.:- M9160784

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