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What is the price of a european call option

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Reference no: EM133027838

Question - What is the price of a European call option if the price of the equivalent put option is $3.00 and the share price, exercise price and risk-free rate are $4.00, $3.50, and 1% per month (compounded), respectively, given the option has two months to expiry?

a) $2.75

b) $6.69

c) $3.57

d) $3.64

e) None of the above answers is correct.

Reference no: EM133027838

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