A call option on a stock has exercise price 100 and premium, Ask an Expert

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A call option on a stock has exercise price $100 and premium of $5 (per share). The premium on a put option on this stock at the same exercise price is also $5 (per share). Assuming put-call parity is satisfied and the price per face on a Treasury bill having the same maturity as the options is .96, what must the current price of the stock be? Explain.

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Financial Management, Finance

Category:- Financial Management
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