Current Price of a Stock Is $50, the Annual Risk-Free

question 1

Multiple Choice

current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20 What is the value of a put option, assuming the same strike price and expiration date as for the call option?

• A) $7.33
• B) $7.71
• C) $8.12
• D) $8.55
• E) $9.00

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