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: $47.00 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: | $47.00 |
| Call option exercise price: | $50.00 |
| Sales price of call options: | $3.80 |
| Months until expiration of call options: | 3 |
| Risk free rate: | 5.0 percent |
| Compounding: | continuous |
| 1. Price of put option = $7.43 |
| 2. | Price of put option = $4.36 |
| 3. Price of put option = $6.18 |
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