The Price of a European Put Option on Scotiabank Stock

question 10

Multiple Choice

The price of a European put option on Scotiabank stock with one year to expiry is trading at $1.05,and the price of a European call option is trading at $3.15.If the stock is currently trading at $43.25,and the risk-free rate is 3%,what is the exercise price of the options?

• A)$41.15
• B)$42.38
• C)$43.25
• D)$46.71
• E)$39.95

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