A call option with 1 month to expiration currently sells for $.70. A put option with the same expiration sells for $1.10. The options are European style. The risk-free rate is 3% and the strike price of both options is $18.00. What is the current stock price?
A) $16.87
B) $17.06
C) $17.29
D) $17.56
E) $17.86
Correct Answer:
Verified
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