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For Stock ABC, you are given: The stock is currently trading for $100 per share. The premium for a 6-month 100-strike European call option on

For Stock ABC, you are given:

  • The stock is currently trading for $100 per share.
  • The premium for a 6-month 100-strike European call option on the stock is 10.35.
  • The premium for a 6-month 100-strike European put option on the stock is 6.50.
  • The effective interest rate for a six-month period is 4%.

Determine the 6-month forward price for a share of Stock ABC.

Answer Choices:

  1. 100

  2. 102

  3. 104

  4. 106

  5. 108

Provide solution please

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