What is the value of call option written on the stock

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Reference no: EM131598040

The current price of a stock is $50.85 and the annual risk-free rate is 7.6 percent. A put option with an exercise price of $55 and one year until expiration has a current value of $ 4.72. What is the value of a call option written on the stock with the same exercise price and expiration date as the put option? Show your answer to the nearest 01. Do not use exist or, in your answer. Because of the limitations of WEBCT random numbers, some of the options may be trading below their intrinsic value. Note, the given interest rate is an effective rate, so for calculation purposes, you need only discount the using the risk free rate, no e x adjustment is needed.

Reference no: EM131598040

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