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A Canadian investor considers the following two options on a given stock: (i) a 12month European call with a strike price of $50 that is

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A Canadian investor considers the following two options on a given stock: (i) a 12month European call with a strike price of $50 that is selling for $6, (ii) a 12-month European put with a strike price of $50 that is selling for $7. The current stock price is $49. Which of the following is true if the continuously compounded risk-free interest rate in Canada is equal to 10% ? None of the available options are correct The call price is high relative to the put price Both the call and put must be mispriced The put price is high relative to the call price

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