Find the present value of the bond

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What is the formula to calculate this question: The current price of a stock is $ 51.84 and the annual effective risk-free rate is 10.1 percent. A call option with an exercise price of $55 and one year until expiration has a current value of $ 7.69 . What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Because of the limitations of WEBCT random numbers, some of the options may be trading below their intrinsic value. Hint, to find the present value of the bond, you do not need to make the e x adjustment, simple discount at the risk free rate.

Reference no: EM132043599

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