Xyzs common stock sells for 35 today and the risk-free rate


XYZ’s common stock sells for $35 today and the risk-free rate of interest is 5.5 percent. A call and a put on XYZ’s stock expire in three months and both options have an exercise price of $40. If the call sells for $1.5, how much should the put option be worth? (Use “Put-call parity” assuming annual compounding)

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Financial Management: Xyzs common stock sells for 35 today and the risk-free rate
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