Question: Let S = $71, s = 38%, r = 8%, and d = 1% (continuously compounded). Compute the Black-Scholes price for a $75-strike European put

  1. Let S = $71, s = 38%, r = 8%, and d = 1% (continuously compounded). Compute the Black-Scholes price for a $75-strike European put option with 1 year until expiration.

a. 5.99

b. 9.99

c. 0.00

d.11.05

e 11.21

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