Question: You are considering purchasing a call option on a stock with a current price of $31.01. The exercise price is $33.02, and the price of
You are considering purchasing a call option on a stock with a current price of $31.01. The exercise price is $33.02, and the price of the corresponding put option is $3.31. According to the put-call parity theorem, if the risk-free rate of interest is 4.4% and there are 104 days until expiration, what is the value of the call? (Hint: Use 365 days in a year.)
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