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The price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annual
The price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annual interest rate is 6.7%, what is the price, based on put-call parity, of a European put at the same strike and expiration?
a. $0.135
b. $0.56
c. $0.055
d. $0.88
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