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Today, the stock price for Morgan Stanley (MS) is trading at SMS=$100. I buy a 1-year CALL with a strke price X=$110 and a premium
Today, the stock price for Morgan Stanley (MS) is trading at SMS=$100. I buy a 1-year CALL with a strke price X=$110 and a premium C=$3.24. The annual risk free rate is 5%. At what premium P should be a 1-year put also with a strike at $110 be trading at? Round it to the second decimal place X.XX. Use simple 1 year discounting
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