Problema stock is currently trading at 50 the continuously, Ask an Expert

Finance

Problem:

A stock is currently trading at $50. The continuously compounded interest rate is 10%. A call option with 6 month expiration and strike price of 50 is currently selling at 8.13.

Required:

What is the price of a put option on the stock with the same exercise price and maturity as the call?

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162852

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