A Call Option with 1 Month to Expiration Currently Sells

question 87

Multiple Choice

A call option with 1 month to expiration currently sells for $0.70.A put option with the same expiration sells for $1.10.The options are European style.The risk-free rate is 3 percent and the strike price of both options is $18.00.What is the current stock price?

• A) $16.87
• B) $17.06
• C) $17.29
• D) $17.56
• E) $17.86

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