You are considering purchasing a put option on a stock with


Question: You are considering purchasing a put option on a stock with a current price of $39. The exercise price is $35. and the price of the corresponding call option is $7. According to the put-call parity theorem, if the risk-free rate of interest is 4%, and there are 60 days until expiration, the value of the put should be what?

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Finance Basics: You are considering purchasing a put option on a stock with
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