A stock currently sells for 10000 a 8-month call option, Ask an Expert

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A stock currently sells for $100.00 A 8-month call option with a strike price of $110 has a price of $1. Assume a 3% continously compounded risk-free rate and a 0% continuous dividend yield.

What is the price of the associated put option?

Show the potential arbitrage strategy is the price of the put is $5

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93050791

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