European call and put options have a strike price of $50 that expires in 120 days. The
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European call and put options have a strike price of $50 that expires in 120 days. The underlying asset is priced at $52 and makes no cash payments during the life of the option. The risk-free rate is 4.5% and the put option is selling for $3.80. Use put-call parity to calculate the price of the call option.
Related Book For
Money, Banking, and the Financial System
ISBN: 978-0134524061
3rd edition
Authors: R. Glenn Hubbard, Anthony Patrick O'Brien
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