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2011-01-09
The market price of a European call is $3 and its price given by Black-Scholes model with a volatility of 30% is $3.5. The price given by this Black-Scholes model for a European put option with the same strike price and time to maturity is $1. What should the market price of the put option be? Explain the reasons for you answer.
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2011-1-13 15:51:19
To obtain the put price, according to BSM and we have the key elements above, and then use the principle of BSM to solve it.
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