Question
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
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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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
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