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The Current Price of a Stock Is $50, the Annual

Question 19

Multiple Choice

The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells for $7.20.What is the value of a put option, assuming the same strike price and expiration date as for the call option?


A) $7.33
B) $7.71
C) $8.12
D) $8.55
E) $9.00

Correct Answer:

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