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A call option with a current value of $6.20. A put option with a current value...

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Finance

A call option with a current value of $6.20. A put option with acurrent value of $7.90. Both options written on the same stock,with 1 year until expiration, and a strike price of $60.00. Theprevailing risk-free rate is 8.00%. What must be the current priceof the stock on which these two options are written?

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Transcribed Image Text

A call option with a current value of $6.20. A put option with acurrent value of $7.90. Both options written on the same stock,with 1 year until expiration, and a strike price of $60.00. Theprevailing risk-free rate is 8.00%. What must be the current priceof the stock on which these two options are written?

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