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QUESTION

The price of a stock is $89 and interest rates are 10% per annum continuously compounded and there are 3 months to expiration.

1.    The price of a stock is $89 and interest rates are 10% per annum continuously compounded and there are 3 months to expiration.

a.    If the put with strike of 90 has value of $3 per share quoted price then find the price for the call of strike 90.                   

The price is _____________per share quoted price

b.    If the call with strike of 85 has value of $8  per share quoted price then find the price of the put of strike 85.

The price is _______________per share quoted price.

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