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Assume the following: -You want to buy a one-year call option on a stock with a strike price of $25. -The current price per share
Assume the following:
-You want to buy a one-year call option on a stock with a strike price of $25.
-The current price per share of the stock is $22.
-The stock does not pay a dividend.
-The risk-free rate is 2.5% per year.
-The price of a put with the same strike price of $25 is currently $5.
Using put-call parity, what should be the price of the call?
Please show your work (preferably in Excel)!
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