A put option that expires in six months with an exercise


A put option that expires in six months with an exercise price of $50 sells for $4.85. The stock is currently priced at $46, and the risk-free rate is 3.4 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Financial Management: A put option that expires in six months with an exercise
Reference No:- TGS01559038

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