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Put option with a current value

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Reference no: EM132347949

You are presented with the following information:

A call option with a current value of $7.40.

A put option with a current value of $7.80. Both options written on the same stock, with 1 year until expiration, and a strike price of $44.00. The prevailing risk-free rate is 4.00%. 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. Also, do not enter the dollar sign and use two decimals (round off to 2 decimals).

Reference no: EM132347949

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