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A Call Option with 6 Months to Expiration Currently Sells

question 69

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A call option with 6 months to expiration currently sells for $2.20. A put option with the same expiration sells for $0.50. The options are European style. The risk-free rate is 3.0 percent and the strike price of both options is $50. What is the current stock price?


Definitions:

Tenant-Days

A metric used in property management to calculate the total number of days tenants occupy a space within a given period.

Net Operating Income

The income generated from normal business operations after deducting operating expenses but before taxes and interest.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, helping businesses better plan for costs.

Tenant-Days

A metric used in real estate and hospitality to quantify the total number of days that units are occupied by tenants within a given period.

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