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In an arbitrage-free market, call options and put options on shares in the life science company Putte och Karl parterapi AB are issued. The put
In an arbitrage-free market, call options and put options on shares in the life science company Putte och Karl parterapi AB are issued. The put option is traded at SEK 7.7 and the current share price is SEK 112.8. Both options have an exercise price of SEK 118.1 and the risk-free interest rate is 2% on an annual basis. What should a call option cost if the options have a remaining term of 3 years? You can assume that no dividend will be distributed during the term. Round your answer to a decimal e.g. 1.8.
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