Zenith Company’s share is currently selling for Rs 60. It is expected that after two months the share price may either increase by 15 per cent or fall by 10 per cent. The risk-free rate is 9 per cent per annum. What should be the value of a two-month European call option with an exercise price of Rs 65? What is the value of a two-month European put option with an exercise price of Rs 65?
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