The current price of a stock is $ 1 0 0 , and the interest rate is

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Question:

The current price of a stock is $

100,

and the interest rate is

10 %

per year annually compounded.

Suppose you buy a one

-

year European call option and sell a one ycar European put option on the stock of the company. Both options have the same exercise price of $

100 .

How much will the combined position

cost

you

?

Posted Date: May 19, 2024 07:08 AM

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The current price of a stock is $ 1 0 0 , and the interest rate is

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