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The current stock price is 50, and the continually compounded annual interest rate is 4%. A 45-strike European call option on the stock with 6 months to expiration has price 6.57. The stock pays no dividends. What price must the stock be in 6 months so that buying the call and selling the call have the same profit?

A 51.57 B 51.70 C 55.57 D 55.70 E 56.57

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91620316

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