Price of a put option


Problem:

A call option is currently selling for $2.60. It has a strike price of $50 and two months to maturity. What is the price of a put option with a $50 strike price and two months to maturity? The current stock price is $51, and the risk-free interest rate is 4 percent.

Required:

Question: What is the Price of a put option?

Note: Please explain comprehensively and give step by step solution.

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Finance Basics: Price of a put option
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