A call option is currently selling for $5.10. It has a strike price of $65 and...
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A call option is currently selling for $5.10. It has a strike price of $65 and two months to maturity. A put option with the same strike price sells for $7.40. The risk-free rate is 4.2 percent and the stock will pay a dividend of $3.00 in three months. What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) A call option is currently selling for $5.10. It has a strike price of $65 and two months to maturity. A put option with the same strike price sells for $7.40. The risk-free rate is 4.2 percent and the stock will pay a dividend of $3.00 in three months. What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Answer rating: 100% (QA)
We can use the putcall parity formula to solve this problem C... View the full answer
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Posted Date:
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