Multiple Choice
The price of a European put option on Power Financial Corp stock with one year to expiry is trading at $0.55,and the price of a European call option is trading at $2.15.If the exercise price of the options is $19,and the risk-free rate is 3.5%,what must be the current price of Power Financial stock?
A) $20.00
B) $20.60
C) $21.15
D) $16.76
E) $19.96
Correct Answer:
Verified
Correct Answer:
Verified
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