A put option written on the stock of Taylor Enterprises (TE) has an exercise price of $25

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A put option written on the stock of Taylor Enterprises (TE) has an exercise price of $25 and 6 months remaining until expiration.

The risk-free rate is 6%. A call option written on TE has the same exercise price and expiration date as the put option. TE’s stock price is $35. If the call option has a price of $12.05, then what is the price

(i.e., value) of the put option?

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Intermediate Financial Management

ISBN: 9781337395083

13th Edition

Authors: Eugene F. Brigham, Phillip R. Daves

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