Solved: A call option on a bank with a strike price of 16 euro, Accounting Basics

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A call option on a bank with a strike price of 16 euro

Question: A call option on a bank with a strike price of €16 (Euro) expires in one year and has a current price of €2.5. The market price of the underlying stock is €16.5, and the risk-free rate is 0.1%. (Assume the price of the risk-free bond matches the strike price of the options.) Use put-call parity to calculate the price of the put option on the same underlying stock with a strike of €16 and an expiration date of one year.

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Accounting Basics: A call option on a bank with a strike price of 16 euro

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Accounting Basics: A call option on a bank with a strike price of 16 euro

Reference No:- TGS02422833

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