The Stock Price Is $50

question 16

Multiple Choice

The stock price is $50. The strike price of a three-month European put option is $52. If the put option is equal in price to the call option and the stock pays no dividends, then the rate of interest for three month's maturity is

• A) 4.61%
• B) 9.23%
• C) 12.66%
• D) 15.69%

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