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Share X pays no dividends. Currently the share price of X is 35 USD. You see that the price of the 30-strike call option on
Share X pays no dividends. Currently the share price of X is 35 USD. You see that the price of the 30-strike call option on stock X is 4.3 USD higher than the price of the 35-strike call option. Both call options have a maturity of 3 months from now.
Assume the continuously compounded risk-free interest rate of 5%.
Calculate the price difference between a 35-strike put option and a 30 strike put option on X stock with a maturity of 3 months from now.
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