Let the current stock price for stock abc is 112 a call, Financial Management

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Let the current stock price for stock abc is 112 a call

Let the current stock price for stock ABC is $112. A call option of the stock ABC with exercise price $110 and one year is trading at a price $12.

A put option of the stock ABC with same exercise price of $110 and same maturity of one year is trading at price of $8.

The risk free interest rate is 5% per year. Examine whether put-call parity relationship holds for the call and put for the stock ABC.

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Financial Management: Let the current stock price for stock abc is 112 a call

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