Problema put option on a stock with a current price of 33, Ask an Expert

Accounting

Problem:

A put option on a stock with a current price of $33 has an exercise price of $35. The price of the corresponding call option is $2.25.

Required:

Question: According to put-call parity, if the effective annual risk-free rate of interest is 4% and there are three months until expiration.

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167262

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