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You are presented with the following information: A call option with a current value of $10.80. A put option with a current value of $8.60.
You are presented with the following information:
A call option with a current value of $10.80. A put option with a current value of $8.60. Both options written on the same stock and both with 1 year until expiration. The current price of the stock is $46.00 and the prevailing risk-free rate is 7.00%. What must be the striking price of either option? *** In your calculations, use simple discounting instead of continuous discounting. Also, do not enter the dollar sign and use two decimals (round off to 2 decimals).
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