Put-call paritythe current price of a stock is 32 and the, Ask an Expert

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Put-Call Parity

The current price of a stock is $32, and the annual risk-free rate is 4%. A call option with a strike price of $32 and 1 year until expiration has a current value of $4.50. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Round your answer to the nearest cent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91781047

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