You Notice That the Price of a One-Year Put Option,with

question 56

Multiple Choice

You notice that the price of a one-year put option,with a $60 strike price,is $1.The current price of the underlying stock is also $58.What should the price of a one-year call option be with a strike price of $60? Assume that the interest rate on a one-year risk free bond is 10%.

• A) $0
• B) $2
• C) $2.45
• D) $4.45

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