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5. Consider call and put options both with 1 year to maturity and a strike price of $60. The current stock price is $50, pays

5. Consider call and put options both with 1 year to maturity and a strike price of $60. The current stock price is $50, pays no dividends, and has a per annum volatility of 25%. The risk-free rate is 5% per annum.

Show that put-call parity holds in the binomial pricing model for this stock using 100 as the number of steps.

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