General furnishings inc has both call and put options, Finance Basics

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General furnishings inc has both call and put options

General Furnishings, Inc., has both call and put options traded on the Chicago Board Options Exchange. Both options have the same exercise price of $40 and the same expiration date. The options will expire in one year. The call is currently selling for $8 per share and the put is selling for $2 per share. The interest rate is 10 percent. What should the stock price of General Furnishings be in order to prevent arbitrage opportunities?

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