# Question: Let S 100 K 90 30

Let S = $100, K = $90, σ = 30%, r = 8%, δ = 5%, and T = 1.

a. What is the Black-Scholes call price?

b. Now price a put where S = $90, K = $100, σ = 30%, r = 5%, δ = 8%, and

T = 1.

c. What is the link between your answers to (a) and (b)? Why?

a. What is the Black-Scholes call price?

b. Now price a put where S = $90, K = $100, σ = 30%, r = 5%, δ = 8%, and

T = 1.

c. What is the link between your answers to (a) and (b)? Why?

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