Question
Problem 17-5 PutCall Parity A put option and a call option with an exercise price of $50 and three months to expiration sell for $1.10
Problem 17-5 PutCall Parity
A put option and a call option with an exercise price of $50 and three months to expiration sell for $1.10 and $5.20, respectively. If the risk-free rate is 4.2 percent per year, compounded continuously, what is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock price $
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
