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What is the exercise price of the above options

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Reference no: EM132986987

Question: How do you solve this question?You are provided with the following option information:Call Premium R5.65

Put Premium R0.65

Current Share Price R136.63

Time to Maturity 2 months

Risk Free Rate 7.7%

Assume that everything is correctly priced, the stock does not pay any dividends and both the put and call have the same exercise price. Approximately what is the exercise price of the above options?

Reference no: EM132986987

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