Value of synthetic put option using put-call parity

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Reference no: EM131613080

A call option trading at $6.50 and a put option trading at $2.75 are available on Limited Brand stock. Both options have an exercise price of $30. Limited’s current stock price is $33.50, and the annual risk free rate is 4%. The options both expire in 200 days.

The value of a synthetic put option using put-call parity is closest to:

$2.36.

$3.00.

$6.89.

Reference no: EM131613080

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