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Consider a put option written on some company's stock. Its expiration is in six months. Its exercise price is $70. This put option is currently
Consider a put option written on some company's stock. Its expiration is in six months. Its exercise price is $70. This put option is currently worth $5.05. The underlying asset, I.e., the shares of stock of this company, can be purchased today for $66 a share. The Treasury bill rate, l.e., risk-free rate, Is 3.8 percent per year, compounded continuously. A call option with the same exercise price and the same explration date as the put optlon, should cost In today's market. (Do not round Intermedlate calculatlons and round your final answer to 2 decimal places, e.g., 32.16.)
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