Question
A call option is currently selling for $2.90. It has a strike price of $80 and ten months to maturity. A put option with
A call option is currently selling for $2.90. It has a strike price of $80 and ten months to maturity. A put option with the same strike price sells for $7.30. The risk-free rate is 4.1 percent and the stock will pay a dividend of $2.70 in three months. What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Current stock price
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th edition
133507696, 978-0133507690
