Multiple Choice
The one-year call on TLM stock with a strike price of $65 is priced at $2.20 while the one-year put with a strike price of $65 is priced at $11.18. The annual risk-free rate is 3.8 percent, compounded continuously. What is the current price of TLM stock?
A) $53.60
B) $48.90
C) $56.70
D) $50.10
E) $47.65
Correct Answer:
Verified
Correct Answer:
Verified
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