Multiple Choice
The price of a European put option on Bombardier stock with one year to expiry is trading at $2.25,and the price of a European call option is trading at $1.50.If the stock is currently trading at $4.75,and the risk-free rate is 4%,what is the exercise price of the options?
A) $3.75
B) $3.12
C) $5.72
D) $4.75
E) $3.03
Correct Answer:
Verified
Correct Answer:
Verified
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