The current spot price of a stock is 34 the expected rate, Ask an Expert

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The current spot price of a stock is $34, the expected rate of return of the stock is 8%, and the volatility of the stock is 20%. The risk-free rate is 3% for all times. Compute the price of a European call option on the stock with strike price $35 expiring in 4 months. Do the same for a European put with the same strike and the same expiration date?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91789550

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