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 $46.78 and the put price is $4.29. The risk-free rate is 2% per annum continuous compounding. Calculate the CALL price.
Hint: put-call parity
Round to the nearest 2 decimal points. For example, if your answer is 123.456, then enter "123.46".
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
