A call option with an exercise price of $31 and 6 months to expiration has a price of $3.77. The stock is currently priced at $17.99, and the risk-free rate is 3 percent per year, compounded continuously. What is the price of a put option with the same exercise price and expiration date?
A) $13.89
B) $14.57
C) $15.24
D) $15.69
E) $16.32
Correct Answer:
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