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You are presented with the following information: A call option with a current value of $6.70. A put option with a current value of $9.20.
You are presented with the following information:
A call option with a current value of $6.70. A put option with a current value of $9.20. Both options written on the same stock, with 1 year until expiration, and a strike price of $53.00. The prevailing risk-free rate is 6.00%. What must be the current price of the stock on which these two options are written? ***In your calculations, use simple discounting instead of continuous discounting.Also, do not enter the dollar sign anduse two decimals(round off to 2 decimals).
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