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Assume that Pear Inc stock is trading at $5, the one year zero coupon bond with face value of $12 is trading at $8, and
Assume that Pear Inc stock is trading at $5, the one year zero coupon bond with face value of $12 is trading at $8, and the European call on the Pear Inc is trading at $5. The European call expires in one year and has exercise price of $10. What is the price of an European put option on Pear Inc that expires in one year and has exercise price of $10?
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