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

question 59

Multiple Choice

Consider a one-year maturity call option and a one-year put option on the same stock,both with striking price $100.If the risk-free rate is 5%,the stock price is $103,and the put sells for $7.50,what should be the price of the call?

• A) $7.50
• B) $5.60
• C) $10.36
• D) $12.26
• E) none of these.

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Interest Income

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