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A European call with a strike price of $50 and a maturity of one year is worth $6. A European put with a strike price of $50 and a maturity of one year is worth $7.5. Assume interest rate to be 1%. What should be the underlying stock price so that call price and put price are priced correctly?

$49.00249

$48.50249

$49.50249

$48.00249

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92353991

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