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A 6 month European call option with an exercise price of 105 on a certain...

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Finance

A 6 month European call option with an exercise price of 105 on a certain stock is priced at 0.91, and the corresponding put option is priced at 23.31. The average return is 8% and the risk free rate is 5% and the stock has an annual volatility of 28%. Using put-call parity, deduce what should be the current selling price of the stock.

Question 1 options:

20.

50.

40.

80.

Answer & Explanation Solved by verified expert
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