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You are given the following information concerning options on a particular stock: Stock price =...

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You are given the following information concerning options on a particular stock: Stock price = $42 Exercise price = $40 Risk-free rate = 7% per year, compounded continuously Maturity = 6 months Standard deviation = 40% per year a. What is the intrinsic value of each option? (Leave no cells blank - be certain required.) Value A Call option Put option A b. What is the time value of each option? (Round your answers to 2 decimal p Value A Call option Put option

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