What will be the current stock price


Question:

Assume that a stock will be worth either $20 or $10 one year from now. A one-year call option on the stock, with an exercise price of $15, is worth $3 today. A one-year put option on the stock, with an exercise price of $12, is worth $0.50 today. What is the current stock price?

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Finance Basics: What will be the current stock price
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