The 1-year 50 options on modern appliances stock are priced, Ask an Expert

Finance

The 1-year $50 options on Modern Appliances stock are priced at $2.08 for the call and $.65 for the put. The annual risk-free rate is 3.0 percent. What is the per share price of the underlying stock?

Hint: use put-call parity to solve for the share price.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92415254

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