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The price of a European call option on a non-dividend-paying stock with a strike price of $42 is $6. The stock price is $40, the
The price of a European call option on a non-dividend-paying stock with a strike price of $42 is $6. The stock price is $40, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is three months What is the price of a three-month European put option on the stock with a strike price of $42?
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A. $3.37
B. $7.37
C. $1.37
D. $6.00
E. $2.00
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