What is prices of european call and put options using


A stock price has an expected return of 16% and a volatility of 25%. The current price is $38. What is the prices of European call and put options (Using The Black-Scholes-Merton Model) on the stock with an exercise price of $40 and a maturity date in six-months? Assume that risk free interest rate is 6%.

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Financial Management: What is prices of european call and put options using
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