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Suppose a stock can be purchased for $8.55. A put option, with a strike price of $10.85 and maturity of 1 month, on the stock
Suppose a stock can be purchased for $8.55. A put option, with a strike price of $10.85 and maturity of 1 month, on the stock can be purchased for $4.33. The risk-free rate is 1.16% per month. What is the premium of a call that has a strike price of $10.85 and 1 month maturity?
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