Value of the put option with the same exercise price

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Reference no: EM131935532

The price of the Xylink common stocks will be either $45 or $70 at the end of the year. T-bills (risk-free assets) currently yield 3% per year. The current price of Xylink’s common stock is $60 per share. What is the value of the call option if the exercise (or strike) price of the option is $55? What is the value of the put option with the same exercise price?

Reference no: EM131935532

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