The spin-1/2 Falicov-Kimball model is solved exactly on an infinite-coordination-number Bethe lattice in the thermodynamic limit. This model is a paradigm for a charge-transfer metal-insulator transition, where the occupancy of localized and delocalized electronic orbitals rapidly changes at the metal-insulator transition (rather than the character of the electronic states changing from insulating to metallic as in a Mott-Hubbard transition). The exact solution displays both continuous and discontinuous (first-order) transitions.