4. Compare the following two call options, written on two different stocks: Dividend yield 0% 0%...
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4. Compare the following two call options, written on two different stocks: Dividend yield 0% 0% Call A B T 1 1 Which stock must have the higher implied volatility? Explain briefly. S 50 55 K 50 50 Option price $8 14 4. Compare the following two call options, written on two different stocks: Dividend yield 0% 0% Call A B T 1 1 Which stock must have the higher implied volatility? Explain briefly. S 50 55 K 50 50 Option price $8 14
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