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Heetal's stock now trades (St) at $80 per share. Possible year-end values are Sp, T =$60 and Su, T =$110. The risk-free rate is 8%.

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Heetal's stock now trades (St) at $80 per share. Possible year-end values are Sp, T =$60 and Su, T =$110. The risk-free rate is 8%. T- 1 year from now =time to maturity. Call and put options with the same strike price and expiration dates are available. Only the put option price is accurately quoted below. Using Put/Call Parity find the true price of the call option, on a per share basis. Strike Price Per Share Put Cost Per Share Call Cost $90 $12.93 $7.15 A28. What is the true price of the call option on a per share basis? (a) $6.78 (b) 59.12 (c) $8.58 (d) $9.85 (e) $10.13 Heetal's stock now trades (St) at $80 per share. Possible year-end values are Sp, T =$60 and Su, T =$110. The risk-free rate is 8%. T- 1 year from now =time to maturity. Call and put options with the same strike price and expiration dates are available. Only the put option price is accurately quoted below. Using Put/Call Parity find the true price of the call option, on a per share basis. Strike Price Per Share Put Cost Per Share Call Cost $90 $12.93 $7.15 A28. What is the true price of the call option on a per share basis? (a) $6.78 (b) 59.12 (c) $8.58 (d) $9.85 (e) $10.13

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