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Put-Call Parity A non-dividend paying stock sells for $20 currently. A 1-year European put option on the stock (with X=$22) costs $3.80. The risk-free rate

Put-Call Parity

A non-dividend paying stock sells for $20 currently. A 1-year European put option on the stock (with X=$22) costs $3.80. The risk-free rate is 5%. A 1-year European call option (with X=$22) should cost how much? Assume daily compounding.

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