Question: *** 4G 4 Question 1 Part (A) A. 1) AMD stock price currently is $51. In one month, AMD stock price can go up to

 *** 4G 4 Question 1 Part (A) A. 1) AMD stock

*** 4G 4 Question 1 Part (A) A. 1) AMD stock price currently is $51. In one month, AMD stock price can go up to $53 or down to $49. The annual risk-free interest rate is 8%, with continuous compounding 1. What is the value of a one-month European call option with a strike price of $50? (596) ii. What is the value of a one-month European put option with a strike price of Sson! (5%)

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