Suppose that a stock paying no dividends is trading at 1560


Question: Suppose that a stock paying no dividends is trading at $15.60 a share. European calls on the stock with strike price $15 and exercise date in three months are trading at $2.83. The interest rate is r = 6.72%, compounded continuously. What is the price of a European put with the same strike price and exercise date?

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Mathematics: Suppose that a stock paying no dividends is trading at 1560
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