A put option and call option with an exercise price of $85 and three months to expiration

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A put option and call option with an exercise price of $85 and three months to expiration sell for $3.15 and 6.12 respectively. If the risk-free rate is 4.8 percent a year, compounded continuously. What is the current stock price?

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Corporate Finance Core Principles and Applications

ISBN: 978-0077905200

3rd edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford

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Question Posted: Feb 08, 2013 02:25 AM

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A put option and call option with an exercise price of $85 and three months to expiration

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Computation of the Current stock price ...View the full answer

Corporate Finance Core Principles and Applications

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