Question: Consider a stock with initial price $ 3 4 . 0 0 and volatility of returns of 3 0 % . Suppose the risk -

Consider a stock with initial price $34.00 and volatility of returns of 30%. Suppose the risk-free rate is 4.25%. For options with one year to maturity, obtain 3(a) the premiums for call options with strike prices of $32.00 and $30.003(b) the premiums for put options with strike prices of $36.00 and $35.00. Comment on the option prices you obtain.

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