PutCall Parity An Alcatel-Lucent put option and a call option with an exercise price of 1 and

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Put–Call Parity An Alcatel-Lucent put option and a call option with an exercise price of €1 and three months to expiration sell for €0.28 and €0.11, respectively. If the risk-free rate is 2.5 per cent per year, compounded continuously, what is the current share price?

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Fundamentals Of Corporate Finance

ISBN: 9780077178239

3rd Edition

Authors: David Hillier, Iain Clacher, Stephen A. Ross

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