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Calculate the premium on the call option

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Reference no: EM132982706

Question - There is stock X currently trading at $ 300 per share. The put option on the stock with an exercise price of $ 290 with a maturity of 6 months is trading at a price of $ 5.5. The market interest rate is known to be 8%. Calculate the premium on the call option assuming put-call parity.

Reference no: EM132982706

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