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The price of a European call and put option with a strike price of $1000 expiring at the end of 1 year are both selling
The price of a European call and put option with a strike price of $1000 expiring at the end of 1 year are both selling for $75.77. The prices of European call and put options with a strike price of $1000 expiring at the end of two years are $129.18 and $82.79, respectively. The continuous compounded risk free rate of interest less than 10% per annum. What is the difference between the prices of a European call option and the price of a European put option each with a strike price of $1000 expiring at the end of three years, rounded to the nearest dollar? (A) $85 (B) $87 (C) $89 (D) $91 (E) $93 The price of a European call and put option with a strike price of $1000 expiring at the end of 1 year are both selling for $75.77. The prices of European call and put options with a strike price of $1000 expiring at the end of two years are $129.18 and $82.79, respectively. The continuous compounded risk free rate of interest less than 10% per annum. What is the difference between the prices of a European call option and the price of a European put option each with a strike price of $1000 expiring at the end of three years, rounded to the nearest dollar? (A) $85 (B) $87 (C) $89 (D) $91 (E) $93
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