Calculate the Price of a European Call Option If the Price

question 47

Multiple Choice

Calculate the price of a European call option if the price of the equivalent put option is $2.00 and the share price,exercise price and risk-free rate are $5.00,$4.50 and 10% p.a. ,respectively,given the option has three months to expiry.

• A)$2.50
• B)$1.39
• C)$2.61
• D)$2.91

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