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You are considering the Westpac share for investment. A call option on Westpac stock with an exercise price of $81 and one-year expiration is selling
You are considering the Westpac share for investment. A call option on Westpac stock with an exercise price of $81 and one-year expiration is selling at $3.5. A put option on Westpac stock with an exercise price of $81 and one-year expiration is selling at $2.75. If the risk-free rate is 10% and Westpac pays no dividends, what should the Westpac share price be?
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