4. 4. Put-call parity [LO 25.1] A put option that expires in six months with an exercise...

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4. 4.

Put-call parity [LO 25.1] A put option that expires in six months with an exercise price of $45 sells for $2.34. The share is currently priced at

$48 and the risk-free rate is 3.5 per cent per year, compounded continuously. What is the price of a call option with the same exercise price?

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