Stock A is currently trading for $33 per share. The stock pays no dividends. A one-year European put option on the stock with a strike
Stock A is currently trading for $33 per share. The stock pays no dividends. A one-year European put option on the stock with a strike price of $35 is currently trading for $2.10. If the risk-free interest rate is 10% per year, what is the price of a one-year European call option on Stock A with a strike price of $35? (in dollars without the dollar sign, use two decimal places)
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Authors: Andrew W. Lo, Shomesh E. Chaudhuri
1st Edition
0691183821, 978-0691183824
