Question: ***PLEASE DO NOT COPY THE ANSWER FROM THE OTHER EXAMPLES ALREADY ANSWERED AS THEY WERE COPIED AND PASTED AND ARE INCORRECT*** You are given the

***PLEASE DO NOT COPY THE ANSWER FROM THE OTHER EXAMPLES ALREADY ANSWERED AS THEY WERE COPIED AND PASTED AND ARE INCORRECT***

You are given the following information for a BSOPM (Black Scholes Options Pricing Model) problem.

Stock Price = $22

Exercise Price = $24

Days to Maturity (Divided By Days in Year) = 120/365

Risk Free Rate = 0.08 [or 8%]

Standard Deviation = 0.25

Variance of Return = 0.0625

With this information and using the BSOPM, calculate the intrinsic value or theoretical price for the CALL AND PUT Options.

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