Question: You are considering purchasing a put option on a stock with a current price of $38. The exercise price is $40, and the price of

You are considering purchasing a put option on a stock with a current price of $38. The exercise price is $40, and the price of the corresponding call option is $3.25. According to the put-call parity theorem, if the risk-free rate of interest is 7% and there are 90 days until expiration, the value of the put should be __________. Assume 365 days in a year

$3.25

$4.59

$4.71

$6.18

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