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Suppose VS's Stock Price Is Currently $20

Question 51

Multiple Choice

Suppose VS's stock price is currently $20. A six-month call option on VS's stock with an exercise price of $15 has a value of $7.14. What is the price of an equivalent put option? The six-month risk-free interest rate is 5 percent per six-month period.


A) $1.43
B) $9.43
C) $8.00
D) $12.00

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