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Interest rates are zero. A European call with a strike price of $50 and a maturity of one year is worth $6. A European put
- Interest rates are zero. A European call with a strike price of $50 and a maturity of one year is worth $6. A European put with a strike price of $50 and a maturity of one year is worth $7. The current stock price is $49. Which of the following is true?
- The call price is high relative to the put price
- The put price is high relative to the call price
- Both the call and put must be mispriced
- None of the above
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