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A three-month call and put options on ABC are trading for $8.50 and $3.69, respectively. The current stock price is $65. The risk free rate
A three-month call and put options on ABC are trading for $8.50 and $3.69, respectively. The current stock price is $65. The risk free rate is 6%. Calculate the implied exercise price for the stock options using the put-call parity. Use discrete compounding 1) $59.55 2) $60.24 ( 3) $61.07 4) $62.94 5) $63.75
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
