Question: Stock B currently trades for ( $ 8 0 ) . A call option on stock B has a strike price of

Stock B currently trades for \(\$ 80\). A call option on stock B has a strike price of \(\$ 75\) and expires in 6 months. The current risk-free rate is \(5\%\), and stock \( B \) has a standard deviation of 0.50.(a) What is the value of this call option according to the BS option pricing model? (b) What is the value of the corresponding put option?
Stock B currently trades for \ ( \ $ 8 0 \ ) . A

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