The shares of Zeta Corporation currently sell for €200 and a European call on Zeta has a strike price of €242.The option will expire two years from now and currently sells for €40.Assume the risk-free rate is 12% per year and that the company will certain to pay a dividend of €5 one year from now.Based on the put-call parity formula,find the value of the comparable European put.
A) €35.45
B) €32.92
C) €2.53
D) €37.39
Correct Answer:
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