Question
PutCall Parity [LO1] A put option that expires in six months with an exercise price of $40 sells for $4.25. The stock is currently priced
PutCall Parity [LO1] A put option that expires in six months with an exercise price of $40 sells for $4.25. The stock is currently priced at $36, and the risk-free rate is 3.5 percent per year, compounded continuously. What is the price of a call option with the same exercise price?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
