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A call option with a current value of $6.00. A put option with a current value of $7.90. Both options written on the same stock, with 1 year until expiration, and a strike price of $51.00. The prevailing risk-free rate is 6.00%. What must be the current price of the stock on which these two options are written? In your calculations, use simple discounting instead of continuous discounting.

Reference no: EM133060443

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