The current stocks price is 40 the average continuously


Question: The current stocks price is $40. The average continuously compounded return of the stock is 12%. The continuously compounded risk-free rate is 5%. The volatility of the stock is 40%. Use the Black-Schools put pricing model to value a 6-month European put with a strike price of $45. (Use the attached standard normal table on the next page.)

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Finance Basics: The current stocks price is 40 the average continuously
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