A call option trading at $6.50 and a put option trading at $2.75 are available on Limited Brand stock. Both options have an exercise price of $30. Limited’s current stock price is $33.50, and the annual risk free rate is 4%. The options both expire in 200 days.
The value of a synthetic put option using put-call parity is closest to:
$2.36.
$3.00.
$6.89.