Multiple Choice
A one-year European call option on ABX corporation with a strike price of $50 is currently trading for $1.45,and a one-year European put option on ABX with the same strike price is currently trading for $6.22.If the stock pays a one-time dividend of $1.50 in exactly 6 months,and the risk-free rate is 8% per year,what is the current price of ABX stock?
A) $42.97
B) $43.03
C) $49.63
D) $52.53
E) $55.41
Correct Answer:
Verified
Correct Answer:
Verified
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