Question: A put with exercise price = $40 has a price of $1. A call option with the same exercise price costs $5. r f =

  1. A put with exercise price = $40 has a price of $1. A call option with the same exercise price costs $5. rf = 5%. Option has 3-months left to expiration. Estimate the stocks current price.

    1.

    $45.5
    2.

    $38.5
    3.

    $40.5
    4.

    $43.5
    5.

    $48.5

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