Suppose that the premium on a 6 month abc stock call option


Suppose that the premium on a 6 month ABC stock call option is $110 and the premium for a put with the same strike price is $57.6.

If the annual interest rate is 2%, the price for a share of ABC stock is S1,000, and the present value of expected dividends during this time is $50, what is the strike price?

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Financial Management: Suppose that the premium on a 6 month abc stock call option
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