the exercise price of both European put and call option is $50 and it expire in 120 days the price of underlying asset at $52 and it makes no cash payment during the life of option .compute the price of call option using put call parity if the risk-free rate is 4.5 % and the pot is selling for $3.80.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter11: Managing Transaction Exposure
Section: Chapter Questions
Problem 6ST
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the exercise price of both European put and call option is $50 and it expire in 120 days the price of underlying asset at $52 and it makes no cash payment during the life of option .compute the price of call option using put call parity if the risk-free rate is 4.5 % and the pot is selling for $3.80.

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