hard · CFA Level I Derivatives
A trader at Meridian Pack observes that a stock is trading at $100, the 1-year risk-free rate is 5%, and a 1-year European call option with an exercise price of $100 is trading for $12.
According to put-call parity (assuming no dividends), the price of a 1-year European put option with an exercise price of $100 should be closest to:
- $17.00
- $12.00
- $7.24
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