Which of the following systems would you use to determine which trends in your supplier's industry will affect your firm the mos
1 answer:
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Answer:
Stock Price is $98.70
Explanation:
given data
exercise price = $100 per share
call price = $25 per share
put price = $17 per share
mature time = 2 years
annual rate of interest = 5%
to find out
What is the stock price today
solution
we will use here Put Call Parity for find out Stock Price that is express as
C + = S + P .....................1
here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1
C + = S + P
25 + = S + 17
solve it we get
P = $98.70
so Stock Price is $98.70