The current price of a stock is $32, and the annual risk-free rate is 5%. A...

The current price of a stock is $32, and the annual risk-free rate is 5%. A call option with a strike price of $29 and with 1 year until expiration has a current value of $6.40. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

NO INTERMEDIATE ROUNDING IS DONE. AS SUCH, IF WE ROUND THE FIGURES, ANSWER WILL BE 2. AS ROUNDING IS NOT DONE, IT COMES TO 1.99

jeff jeffy answered 4 days ago

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