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You are considering purchasing a put option on a stock with a current price of $33. The exercise price is $35, and the price of
You are considering purchasing a put option on a stock with a current price of $33. The exercise price is $35, and the price of the corresponding call option is $2.25. According to the put-call parity theorem, if the risk-free rate of interest is 3% and there is one year remaining until expiration, the value of the put should be _____. (Assume that the interest is annually compounded.) A. 4.25 B. 4.99 C. 3.23 D. 2.25
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