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

question 75

Multiple Choice

Consider a one-year maturity call option and a one-year put option on the same stock,both with striking price $45.If the risk-free rate is 4%,the stock price is $48,and the put sells for $1.50,what should be the price of the call?

• A)$4.38
• B)$5.60
• C)$6.23
• D)$12.26
• E)none of the above.

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