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# Suppose the current stock price for A.B.C Corp is £100, the volatility is 0.25, the time to maturity is 1 year and the strike prices are K1=£80, K2= £100, calculate the premium for both put and call options using both strike prices, assume risk free rate as 0.0077 or 0.77% (10%). Suppose you have a long position in the

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## Managerial Economics

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

ISBN: 978-0133020267