A European-style call option and a European-style put option share the same underlying stock, same time to maturity of three months, and same exercise price of $55. The put option is priced at $6.70. If the risk free rate is 5 percent per year and the stock price is $52. 

Compute the call option price.

Answer rating: 100% (QA)

To compute the call option price in this scenario we can leverage the putcall parity relationship Th... View the full answer