Current price of stock and the annual risk-free rate

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The current price of a stock is $50 and the annual risk-free rate is 8 percent. A call option with an exercise price of $55 and one year until expiration has a current value of $7.20. What is the value of a put option (to the nearest dollar) written on the stock with the same exercise price and expiration date as the call option? (Use put-call parity) a. $9.00 b. $7.00 c. $5.00 d. $6.00 e. $8.00

Reference no: EM131211345

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