Question
A European put option with a strike price of $40 sells for $4.80. The option expires in two months, and the current stock price is
A European put option with a strike price of $40 sells for $4.80. The option expires in two months, and the current stock price is $42. If the risk-free interest rate is 5 percent, what is the price of a European call option with the same maturity and strike price?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
