Question: Problem 20-16 Put-call parity The common stock of Triangular File Company is selling at $98. A 39-week call option written on Triangular File's stock is

 Problem 20-16 Put-call parity The common stock of Triangular File Company

Problem 20-16 Put-call parity The common stock of Triangular File Company is selling at $98. A 39-week call option written on Triangular File's stock is selling for $16. The call's exercise price is $108. The risk-free interest rate is 3% per year. a. Suppose that puts on Triangular stock are not traded, but you want to buy one. Which combination will produce the same results? O Buy call, invest PV(EX), sell stock short O Sell call, invest PV(EX), sell stock short O Buy call, lend PV(EX), buy stock O Sell call, lend PV(EX), buy stock b. Suppose that puts are traded. What should a 39-week put with an exercise price of $108 sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Put option price

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