Question: WebWork 6: Problem 9 Previous Problem Problem List Next Problem (1 point) A stock currently trades at $35. The continuously compounded risk-free rate of interest

WebWork 6: Problem 9 Previous Problem Problem List Next Problem (1

WebWork 6: Problem 9 Previous Problem Problem List Next Problem (1 point) A stock currently trades at $35. The continuously compounded risk-free rate of interest is 12%, and the volatility of the stock return is 49%. Use the Black-Scholes formula to compute each of the following (round each answer to the nearest penny). [Note: Use software to compute the values of the normal CDF, not the table.] a) The price of a 0.75-year European call option, struck at $35. Price = $ b) The price of a 0.75-year European put option, struck at $35. Price = $

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