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Business, 07.04.2020 18:58 leslieperez67

The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. Using the put-call parity, compute the price of a one-year European put option on the stock with a strike price of $50. Please show your work.

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The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6....
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