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A European call option on Altria Group stock is as follows: European call option on Altria Group stock Price of Altria Group stock $51 Strike
A European call option on Altria Group stock is as follows:
European call option on Altria Group stock | |
Price of Altria Group stock | $51 |
Strike price of one-year European call option on Altria Group stock | $50 |
Cost of a one-year European call option on Altria Group stock | $6 |
Risk-free rate (continuously compounded) | 6% |
Maturity | 1 year |
What is the price of a one-year European put option (representing 100 shares) on Altria stock with a $50 strike price? (Show Work).
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