Multiple Choice
A stock currently trades for $63. Call options with a strike price of $62 sell for $4.00 and expire in six months. If the risk-free rate is 4 percent, what should the price of a put option with an exercise price of $62 be worth?
A) $0.62
B) $0.98
C) $1.80
D) $3.00
E) $5.80
Correct Answer:
Verified
Correct Answer:
Verified
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