Consider a One-Year Maturity Call Option and a One-Year Put

question 44

Multiple Choice

Consider a one-year maturity call option and a one-year put option on the same stock, both with striking price $45.If the risk-free rate is 4%, the stock price is $48, and the put sells for $1.50, what should be the price of the call?

• A)$4.38
• B)$5.60
• C)$6.23
• D)$12.26

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Definitions:

Symbolic Interactionist Theories

Theories in sociology that focus on how individuals interpret and give meaning to social symbols, and how this process affects social interaction and society.

Social Conditions

The societal factors and circumstances that affect individuals' lives and well-being, including wealth, education, and health.

Binge Drinking

The consumption of an excessive amount of alcohol in a short period, typically defined as five or more drinks for men and four or more for women within about two hours.

Meanings

Meanings involve the significance or interpretation given to words, signs, symbols, or other entities, reflecting how people understand and communicate about the world.