Question
A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently,
A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the stock price is $48.11 and the put price is $4.11. The risk-free rate is 2% per annum continuous compounding. Calculate the CALL price.
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
10th Edition
1260013820, 978-1260013825
