What are the prices of a call option and put option with


1. What are the prices of a call option and put option with the following characteristics: Stock Price (P0) = $69 Exercise Price (E ) = $70 Risk-free rate r = 6% per year, compounded continuously Standard deviation (σ) = 41% per year.

2. Your investment club has only two stocks in its portfolio. $25,000 is invested in a stock with a beta of 0.8, and $45,000 is invested in a stock with a beta of 1.8. What is the portfolio's beta? Round your answer to two decimal places.

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Financial Management: What are the prices of a call option and put option with
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