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A Call Option with 6 Months to Expiration Currently Sells

Question 93

Multiple Choice

A call option with 6 months to expiration currently sells for $2.05. A put option with the same expiration sells for $.60. The options are European style. The risk-free rate is 3.0% and the strike price of both options is $50. What is the current stock price?


A) $47.89
B) $49.19
C) $50.72
D) $51.29
E) $52.08

Correct Answer:

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