medium · Principles of Finance time-value-of-money
A European call option with a strike of 50 trades for 5.00 and a put with the same strike and expiration trades for 3.00.
If the risk-free rate is 5% and the time to expiration is 1 year, what must the current stock price be for Put-Call Parity to hold?
- 50.00
- 49.56
- 48.00
- 52.00
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