Discounting instead of continuous discounting

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A call option with a current value of $7.20. A put option with a current value of $7.00. Both options written on the same stock and both with 1 year until expiration. The current price of the stock is $41.00 and the prevailing risk-free rate is 6.00%. What must be the striking price of either option? *** In your calculations, use simple discounting instead of continuous discounting. Also, do not enter the dollar sign and use two decimals (round off to 2 decimals).

Reference no: EM132345635

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