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Suppose Robbins Co. stock is selling for $41 per share. Puts and calls with an exercise...

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Finance

Suppose Robbins Co. stock is selling for $41 per share. Puts andcalls with an exercise price of $50 are available on Robbins. Therisk risk-free rate is 8%. The time to maturity of the puts andcalls is 3 months (i.e., t = .25). The volatility of Robbins’ stockreturns is 30% (i.e., ? = .30). Use the Black-Scholes equation todetermine the prices of the call and put.

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