Question
The current price of a stock is $35, and the annual risk-free rate is 3%. A call option with a strike price of $31 and
The current price of a stock is $35, and the annual risk-free rate is 3%. A call option with a strike price of $31 and with 1 year until expiration has a current value of $5.50. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
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