A stock has a price of $32 and an annual return volatility of 45 percent. The risk-free

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A stock has a price of $32 and an annual return volatility of 45 percent. The risk-free rate is 3.0 percent. Using a computer spreadsheet program, calculate the call and put option prices with a strike price of $31.50 and a 90-day expiration. Also calculate the deltas of the call and put.

Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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