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Using the Black-Scholes Formula,calculate the Price of a Put Option

question 26

Multiple Choice

Using the Black-Scholes formula,calculate the price of a put option from the following information: exercise price $3.00;current share price $3.30;term to expiry three months;standard deviation 0.30 p.a. ;and risk-free interest rate 10% p.a.continuously compounded.


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