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You have looked in the financial press c found the following information: Current stock price = $50 Put price = $1.15 Exercise price =

 

You have looked in the financial press c found the following information: Current stock price = $50 Put price = $1.15 Exercise price = $45 Risk-free rate = 5% Expiration in 1 year What is the call price? 50+ 1.15 = C + 45 / (1.05) C = 8.29

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