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problem: Stock in the Nantucket Corporation is currently selling for USD 25 each share. In one year, the price will be either USD 20 or USD 30. T-bills with one year to maturity are paying ten percent. Determine the value of following options? [Show all work to receive full credit.]

[A]   A put option with a strike price of $26?

[B]   A call option with a strike price of $26?

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