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Problem:

It is possible to buy three-month call options and three-month puts on stock Q. Both options have an exercise price of $62 and both are worth $12. If the interest rate is 5.50% a year, what is the stock price? (Hint: Use put-call parity.)

Please explain in detail and provide step by step solution.

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  • Category:- Basic Finance
  • Reference No.:- M91147505

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