A call option on jupiter motors stock with an exercise


A call option on Jupiter Motors stock with an exercise price of $45 and one-year expiration is selling at $3. A put option on Jupiter stock with an exercise price of $45 and one-year expiration is selling at $2.5. If the risk-free rate is 10% and Jupiter pays no dividends, what should the stock price be?

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Financial Management: A call option on jupiter motors stock with an exercise
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