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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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The current market value of a stock is USD 100.00. The continuously compounded risk-free interest rate is 12% annually. The exercise price for all options is USD 90.00. Given this information, determine the highest potential costs for the following options, each with a maturity of 3 months:

  1. European call option
  2. American call option
  3. European put option
  4. American put option

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