Day's End Stock Is Selling for $43 a Share

question 54

Multiple Choice

Day's End stock is selling for $43 a share. The 6-month call with a strike price of $45 is priced at $.30. Risk-free assets are currently returning 4.1 percent per year, compounded continuously. What is the price of a 6-month put with a strike price of $45?

• A) $1.39
• B) $1.46
• C) $1.28
• D) $1.51
• E) $1.32

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