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European call and put options on a stock, with the same exercise price and maturity of 1 year, are trading for $12.43 and $3.78, respectively.

European call and put options on a stock, with the same exercise price and maturity of 1 year, are trading for $12.43 and $3.78, respectively. The current price of the stock is $50, and the risk-free rate is 7%. What must be the exercise price of the options if no arbitrage holds?

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