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The market price of a European call is R3.00 and its price given by Black-ScholesMerton model with a volatility of 30% is R3.50. The price

The market price of a European call is R3.00 and its price given by Black-ScholesMerton model with a volatility of 30% is R3.50. The price given by this Black-ScholesMerton model for a European put option with the same strike price, volatility and time to maturity is R1.00. What should the market price of the put option be? Explain the reasons for your answer.

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