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

question 68

Multiple Choice

You notice that the price of a one-year call option,with a $40 strike price,is $5.The current price of the underlying stock is also $40.What should the price of a one-year put option be with a strike price of $40? Assume that the interest rate on a one-year risk free bond is 10%.

• A) $5
• B) $0
• C) $1.36
• D) $8.63

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