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QUESTION

A stock is currently selling at $94 per share. The price of a 3 month (to expiration) call option with an exercise price of $90 is $9.

A stock is currently selling at $94 per share. The price of a 3 month (to expiration) call option with an exercise price of $90 is $9. if the risk free interest rate is 2% per year, what must be the price of a 3-month put option on this stock with exercise price of $90? (the stock pays no dividends)

A. $0

B. $2.56

C. $3.78

D. $4.56

E. none of the above

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