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The Price of a European Put Option on Scotiabank Stock

Question 10

Multiple Choice

The price of a European put option on Scotiabank stock with one year to expiry is trading at $1.05,and the price of a European call option is trading at $3.15.If the stock is currently trading at $43.25,and the risk-free rate is 3%,what is the exercise price of the options?


A) $41.15
B) $42.38
C) $43.25
D) $46.71
E) $39.95

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