General furnishings inc has both call and put options, Ask an Expert

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General Furnishings, Inc., has both call and put options traded on the Chicago Board Options Exchange. Both options have the same exercise price of $40 and the same expiration date. The options will expire in one year. The call is currently selling for $8 per share and the put is selling for $2 per share. The interest rate is 10 percent. What should the stock price of General Furnishings be in order to prevent arbitrage opportunities?

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Category:- Basic Finance
Reference No.:- M91892365

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