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Accounting

Problem:

The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20.

Required:

Question: What is the value of a put option, assuming the same strike price and expiration date as for the call option?

Note: Please show basic calculation

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168768

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