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You know that the one-year call on Rump Gumb stock with a strike price of $65 is priced at $2.20 while the one-year put on
You know that the one-year call on Rump Gumb stock with a strike price of $65 is priced at $2.20 while the one-year put on the Rumb Gumb stock with a strike price of $65 is priced at $11.18. The annual risk-free rate is 3.8 percent, compounded continuously.
Can you find the current price of Rumb Gumb stock? What is it?
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