A put option on a stock is priced at 5 the option has an


Question: A put option on a stock is priced at $5. The option has an exercise price of X = $25. The stock's current price is S0 = $25, the option's time to maturity is 1 year, and the interest rate is r = 5%. Use the Black-Scholes model to determine the option's implied volatility, the σ used to price the option.

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Finance Basics: A put option on a stock is priced at 5 the option has an
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