A Call Option with 6 Months to Expiration Currently Sells

question 69

Multiple Choice

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?

• A) $47.89
• B) $49.19
• C) $50.97
• D) $51.29
• E) $52.08

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