In December 2014, a 13-month call on a stock, with an exercise price of $305, sold for $42.50. The stock price was $305. The risk-free interest rate was 1%. Assume that the stock options are European options. (Note: This stock does not pay a dividend.)
How much would you be willing to pay for a put on this stock with the same maturity and exercise price? Get Finance homework help today
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