Consider the following purchasing options on Apple stock. The current price to buy one share of

Question:

Consider the following purchasing options on Apple stock.
• The current price to buy one share of Apple stock is $90.
• The stock does not pay dividends.
• The risk-free interest rate, compounded continuously, is 6%.
• A European call option on one share of Apple stock with a of K that expires in one year costs $35.15.
• A European put option on one share of Apple stock with a of K that expires in one year costs $13.95.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.