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What is the price of put should be

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Problem:

European call option and put option on IBM stock have the same strike price and same time to maturity. Now, the price of the call is $3.35 and the price of the put is $0.85. One minitues later, news reaches the market increases volatilities (no effect on the stock price or interest rates). As a result the price of the call changes to $3.50.

What's the price of put should be? Please provide reason in detail.

Reference no: EM133275796

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