QuantumScape shares currently trade at $12.31. The one year continuously compounded interest rate equals 2%.' The premium

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QuantumScape shares currently trade at $12.31. The one year continuously compounded interest rate equals 2%.' The premium of a 20-strike put option on QuantumScape maturing in one year is $9.90.

Compute the arbitrage-free price of a 20-strike call option with maturity in one year?

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Posted Date: Mar 29, 2023 12:49 AM

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QuantumScape shares currently trade at $12.31. The one year continuously compounded interest rate equals 2%.' The premium

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Derivatives Markets

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