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Consider a European call option and a European put option on a non dividend-paying stock. The price of the stock is $100 and the strike
Consider a European call option and a European put option on a non dividend-paying stock. The price of the stock is $100 and the strike price of both the call and the put is $103, set to expire in 1 year. Given that the price of the European call option is $9.43 and the risk-free rate is 5%, what is the price of the European put option via put-call parity?
My professor's answers say it should be 7.41 but I keep getting 7.53, please show work.
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