A stock is valued at $25.75 a share.A European 6-month call option has a strike price of $25 and an option premium of $1.50.The market rate is 9.5 percent and the risk-free rate is 2.5 percent.What is the price of a European 6-month put option with a $25 strike price?
A) $0.00
B) $0.09
C) $0.44
D) $1.48
E) $1.61
Correct Answer:
Verified
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