Consider a 5-year 10% coupon bond with a face value of 1,000. It pays semi-annual...
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Consider a 5-year 10% coupon bond with a face value of 1,000. It pays semi-annual coupons and is issued today. A call and put (both with the same strike price of 950 and same 1-year maturity) on that bond are available. The call is priced at 100. The continuously compounded interest rate is 3%. Calculate the put price. a. 144.05 b. 63.87 c. 161.22 d. 371.18 e. 176.04
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