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Consider a put option on a stock that currently sells for 100, but may rise to 120 or fall to 80 after 1 year. The

Consider a put option on a stock that currently sells for £100, but may rise to £120 or fall to £80 after 1 year. The risk free rate of return is 10%, and the exercise price is £90.

What is the price of a call option on the same stock with the same exercise price and the same expiration date?

Explain the reasoning behind your calculations.

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