A put option that expires in six months with an exercise price of $65 sells for $5.12.

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A put option that expires in six months with an exercise price of $65 sells for $5.12. The stock is currently priced at $66 and the risk-free rate is 3.6 percent per year, compounded continuously. What is the price of a call option with the same exercise price?

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Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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