A Call Option on Juniper Corp

question 77

Multiple Choice

A call option on Juniper Corp. stock with an exercise price of $75 and an expiration date 1 year from now is worth $3 today. A put option on Juniper Corp. stock with an exercise price of $75 and an expiration date 1 year from now is worth $2.50 today. The risk-free rate of return is 8%, and Juniper Corp. pays no dividends. The stock should be worth ________ today.

• A) $69.73
• B) $71.69
• C) $73.12
• D) $77.25