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European call and put options on the same stock with the same exercise prices of $45 will expire in 115 days. The underlying stock is
European call and put options on the same stock with the same exercise prices of $45 will expire in 115 days. The underlying stock is currently priced at $48 and makes no dividends during the life the options. The risk-free rate is 4.5% per annum with continuous compounding. The put is currently selling for $3.75. According to the put call parity, the price of the call option is closest to:
A. $2.44
B. $7.38
C. $8.31
D. None of these above
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