Question: Given the following parameters use put-call parity to determine the price of a put option with the same exercise price. Current stock price: $22.00 Call

Given the following parameters use put-call parity to determine the price of a put option with the same exercise price.

Current stock price:

$22.00

Call option exercise price:

$25.00

Sales price of call options:

$3.80

Months until expiration of call options:

6

Risk free rate:

2.2 percent

Compounding:

continuous

Price of put option = $6.53

Price of put option = $6.26

Price of put option = $7.08

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