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The current price of a non-dividend-paying stock is $80. At the end of 6 months, it will be either $96 or $64. The annual risk-free
The current price of a non-dividend-paying stock is $80. At the end of 6 months, it will be either $96 or $64. The annual risk-free interest rate is 4% with continuous compounding.
c) Do the put and call option values obey the put-call parity relationship?
d) At what strike price do the put and call options have the same value?
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