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Question 2: a Suppose you observe the following data for a certain stock: Stock price: $110.5 Call price (6 months to maturity (t=0.5), X=105): 14
Question 2: a Suppose you observe the following data for a certain stock: Stock price: $110.5 Call price (6 months to maturity (t=0.5), X=105): 14 Put price (6 months to maturity (t=0.5), X=105): 5.5 Risk free rate: 5% assume that it is continuously compounded. Does this violate the put call parity
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