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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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A trader focusing on derivatives needs to determine the price limits for different options on a specific stock. The current market price of the stock is USD 100.00, and the annual continuously compounded risk-free interest rate is 12%. Given that the strike price for all the options in question is USD 90.00, what are the maximum possible prices for the following options, considering a 3-month maturity period: a European-style call option, an American-style call option, a European-style put option, and an American-style put option?

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