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A call option with a current value of $9.00. A put option with a current value of $5.10. Both options written on the same stock
A call option with a current value of $9.00. A put option with a current value of $5.10. Both options written on the same stock and both with 1 year until expiration. The current price of the stock is $56.00 and the prevailing risk-free rate is 9.00%. What must be the striking price of either option?
In your calculations, use simple discounting instead of continuous discounting. Also, do not enter the dollar sign and use two decimals (round off to 2 decimals).
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