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European call and put options on the same stock with the same exercise prices of $44.5 will expire in 192 days. The underlying stock is
European call and put options on the same stock with the same exercise prices of $44.5 will expire in 192 days. The underlying stock is currently priced at $53.2 and makes no cash payments during the life of these options. The risk-free rate is 9% per annum with continuous compounding. The put is currently selling for $3.62. Assume that a year is 365 days. According to the put-call parity, the price of the call option is closest to: a. $ 5.08 b. $ 2.62 c. $ 14.38 d. None of the other answers provided is correct e. $ 7.14
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