Question
A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $3. A put option on Jupiter
A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $3. A put option on Jupiter stock with an exercise price of $75 and one-year expiration is selling at $2.50. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be?
I put this in Excel (see below as I could not upload the Excel spreadsheet) and came us with $75.44, but think I calculation is off and not sure where... Can someone help with the problem using Excel and see what I did wrong?
Strike $ 75.00
Interest rate 8.00%
Time to X (% of yr) 1.00%
Call Option Price= $3.00
Put Option Price= $2.50
Stock Price $75.44 Formula: -(C7-C6-C3/((1+C4)^C5))
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