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The price of a European call on a stock that expires in one year and has a strike of $60 is $6. The price of
The price of a European call on a stock that expires in one year and has a strike of $60 is $6. The price of a European put option on the same stock that also expires in one year and has the same strike of $60 is $4. The stock does not pay any dividend and the one- year risk-free rate of interest is 5%. Derive the stock price today. Show your work.
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