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Please help me solve and walk me through each step so that I can learn how to do on my own. Thank you! Problem 17-4
Please help me solve and walk me through each step so that I can learn how to do on my own. Thank you!
Problem 17-4 Put-Call Parity
A put option that expires in six months with an exercise price of $60 sells for $4.95. The stock is currently priced at $56, and the risk-free rate is 3.6 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)
Call price $
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