Question
A call option on Jupiter Motors stock with an exercise price of $45.00 and one-year expiration is selling at $8.37. A put option on Jupiter
A call option on Jupiter Motors stock with an exercise price of $45.00 and one-year expiration is selling at $8.37. A put option on Jupiter stock with an exercise price of $45.00 and one-year expiration is selling at $12.04. If the risk-free rate is 3% and Jupiter pays no dividends, what should the stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.; Use CONTINUOUS COMPOUNDING)
Stock price $
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
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