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XYZs common stock sells for $35 today and the risk-free rate of interest is 5.5 percent. A call and a put on XYZs stock expire
XYZs common stock sells for $35 today and the risk-free rate of interest is 5.5 percent. A call and a put on XYZs stock expire in three months and both options have an exercise price of $40. If the call sells for $1.5, how much should the put option be worth? (Use Put-call parity assuming annual compounding)
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