A call option with 6 months to expiration currently sells for $2.20. A put option with the same expiration sells for $0.50. The options are European style. The risk-free rate is 3.0 percent and the strike price of both options is $50. What is the current stock price?
A) $47.89
B) $49.19
C) $50.97
D) $51.29
E) $52.08

Question

Quizplus · Accepted Answer

The Answer of A call option with 6 months to expiration currently sells for $2.20. A put option with the same expiration sells for $0.50. The options are European style. The risk-free rate is 3.0 percent and the strike price of both options is $50. What is the current stock price?
A) $47.89
B) $49.19
C) $50.97
D) $51.29
E) $52.08

A Call Option with 6 Months to Expiration Currently Sells