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A stock that pays no dividends has a price of $50. The three-month maturity, at-the-money European call and put are trading at $ 4.276 and
A stock that pays no dividends has a price of $50. The three-month maturity, at-the-money European call and put are trading at $ 4.276 and $ 3.655, respectively. The three-month forward price of the stock is:
Hint: Recover the continuously compounded risk free rate to figure out the cost of carry.
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