(Answered) A call and a put option on the same non-dividend-paying

Management Studies

A call and a put option on the same non-dividend-paying stock, with the same $40 strike price, and with the same 1-year expiration date sell for $7.95 and $2.98 respectively. If the underlying stock price is $42, what is the no-arbitrage futures price for a one-year futures contract on the underlying stock?

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