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A CALL is priced at $2.42 with an exercise of $37.50 and 4 months to expiration. What is the price of the underlying STOCK (SO)
A CALL is priced at $2.42 with an exercise of $37.50 and 4 months to expiration. What is the price of the underlying STOCK (SO) if a PUT with the same exercise and time to expiration has a premium of $2.31. The risk-free rate is currently 7.00%. Assume put/call parity, continuous compounding, and 12 months per year. 38.26 35.35 41.69 36.75 39.25
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