A Put Option with a $50 Strike Price on Bavarian

question 61

Multiple Choice

A put option with a $50 strike price on Bavarian Sausage stock will expire in one year.If you know that the risk free rate is 4%,that the stock currently sells at $47 and the call on the same stock has a value of $2.75,what is the price of the put?

• A) $4.67
• B) $2.75
• C) $3.83
• D) $1.56

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