Suppose you observe the following data for a certain stock: Stock price: $110.5 Call price (6 months

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Suppose you observe the following data for a certain stock: Stock price: $110.5

Call price (6 months to maturity (t=0.5), X=105): 14

Put price (6 months to maturity (t=0.5), X=105): 5.5

Risk free rate: 5% assume that it is continuously compounded. Does this violate the put call parity?

Posted Date: May 19, 2024 02:09 AM

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Suppose you observe the following data for a certain stock: Stock price: $110.5 Call price (6 months

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