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A 6-month $85 call option on a stock has an option premium of $.54. The 6-month, $85 put option has an option premium of $1.15.
A 6-month $85 call option on a stock has an option premium of $.54. The 6-month, $85 put option has an option premium of $1.15. The risk-free rate is 2.5 percent. The options are European-style. What's the price of the stock? Show work if possible
A. $84.28 B. $82.89 C. $83.35 D. $82.54
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