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Determine the price of a put option using put-call parity under the following conditions: price of the underlying asset is $118; exercise price of the options is $100; price of the call option is $26; six months to expiration; risk-free rate of 4.8%.

Describe the manner in which put-call parity can be used to price other types of derivative securities, such as forwards or futures contracts.

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  • Category:- Basic Finance
  • Reference No.:- M940992

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