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Use the no-arbitrage approach to find the price of a

Question: The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. The risk-free rate is 5%.

Use the no-arbitrage approach to find the price of a European 6-month call option with a strike price of $32
Use risk-neutral valuation to find the price of a European 6-month put option with the same strike price.

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Business Management: Use the no-arbitrage approach to find the price of a

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Business Management: Use the no-arbitrage approach to find the price of a

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