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A 4-Month ABC $30 Call Is Priced at $1

Question 79

Multiple Choice

A 4-month ABC $30 call is priced at $1.50 while the 4-month ABC put is priced at $2.20.Risk-free assets are currently returning 0.25 percent per month.What is the price of ABC stock?


A) $29
B) $27
C) $31
D) $34
E) $30

Correct Answer:

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