The Price of a European Put Option on Scotiabank Stock

question 65

Multiple Choice

The price of a European put option on Scotiabank stock with one year to expiry is trading at $2.25,and the price of a European call option is trading at $1.60.If the exercise price of the options is $45,and the risk-free rate is 5%,what must be the current price of Scotiabank stock?

• A)$42.75
• B)$45.00
• C)$43.51
• D)$42.21
• E)$43.40

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