You are given the following information on some company's stock, as well as the risk-free...
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| You are given the following information on some company's stock, as well as the risk-free asset. Use it to calculate the price of the call option written on that stock, as well as the price of the put option. (HINT: You should use the Black-Scholes formula!) (Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16.) |
| Today's stock price | = | $72 |
| Exercise price | = | $70 |
| Risk-free rate | = | 4.3% per year, compounded continuously |
| Option maturity | = | 4 months |
| Standard deviation of annual stock returns | = | 61% per year |
call price: ?
put price: ?
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