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Accounting

Problem:

The current price of a stock is $34, and the annual risk-free rate is 3%. A call option with a strike price of $31 and 1 year until expiration has a current value of $4.70.

Required:

Question: What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

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

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172257

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