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QUESTION 7 Consider two corresponding options, consisting of a call and a put with the exact same parameter values. For thi

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Answer #1

Put-Call Parity Equation: CX/(1+r) So + P r Annual Interest Rate C Call Premium P Put Premium XStrike Price of Call and Put,

Let's put values in above equation

8.6+48= 48+P

8.6+48-48=P

P= 8.6

So according to call put parity the put premium= 8.6.

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