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Business, 27.05.2020 23:07 haelleydorethy

A stock is currently selling for $48. A 4-month put option with a strike price of $50 has an option premium of $3.60. The risk-free rate is 4.5 percent per year and the market return is 11 percent per year. What is the option premium on a 4-month call with a $50 strike price? Assume the options are European style. Select one: a. $0.67 b. $3.17 c. $2.33 d. $3.31 e. $0.00

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