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A put option on ABC Corp. stock with an exercise price of $80 and an expiration date 1 year from now is worth $3.50 today.
A put option on ABC Corp. stock with an exercise price of $80 and an expiration date 1 year from now is worth $3.50 today. The risk-free rate of return is 8%, and Juniper Corp. pays no dividends. The stock worth $75 today. A call option on ABC Corp. stock with an exercise price of $80 and an expiration date 1 year from now should be worth ______ today. (Use Put-Call Parity)
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