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The price of a European call option on a non-dividend-paying stock with a strike price of $40 is $6. The stock price is $42, the continuously compounded risk-free rate (all maturities) is 5% and the time to maturity is 6 months. What is the price of a six-month European put option on the stock with a strike price of $40?

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Financial Management, Finance

Category:- Financial Management
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