(Answered) Nomura has both european calls and puts traded on the

Management Studies

Nomura has both European calls and puts traded on the Chicago Board of Trade. Both options have the same exercise price of $60 and expire in 3 months. Nomura does not pay any dividend. The puts and calls are selling for $4 and $6.50 respectively. The risk free rate is 6% per annum. What should the current stock price of Nomura be in order to prevent arbitrage?

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