Use put–call parity, It is possible to buy three-month call

Use put–call parity

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Reference no: EM131068344

It is possible to buy three-month call options and three-month puts on stock Q. Both options have an exercise price of $78 and both are worth $28. If the interest rate is 5.00% a year, what is the stock price? (Hint: Use put–call parity.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131068344

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