A trader buys a call option on a non-dividend paying stock, Ask an Expert

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A trader buys a call option on a non-dividend paying stock with a strike price of $45 and simultaneously writes a put option on the same underlying stock with the same strike price. Both options expire in one year. The prices of call and put today are $4 and $3 respectively. The interest rate is 3% per annum. What is your prediction of the stock price today?

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Financial Management, Finance

Category:- Financial Management
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