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Find the estimated price of the six-month put option

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Reference no: EM132800878

Question - An analyst is determining the arbitrage-free price of a six-month, $70 put option. Because of minimal trading in put options, there is no listed quote for this put option. Currently, the risk-free rate is at 6.5%. The stock price is trading at $68, while a six-month $70 call option is trading at $3.00. Find the estimated price of the six-month put option using put-call parity?

Reference no: EM132800878

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