ESSENTIALS OF INVESTMENTS>LL<+CONNECT
ESSENTIALS OF INVESTMENTS>LL<+CONNECT
11th Edition
ISBN: 9781264001026
Author: Bodie
Publisher: MCG
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Chapter 16, Problem 2PS

A put option on a stock with a current price of $ 33 has an exercise price of $ 35 . The price of the corresponding call option is $ 2 . 25 . According to put-call parity, if the effective annual risk-free rate of interest is 4 % and there are three months until expiration, what should be the price of the put? LO 16 4

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