14. A call option has a premium of $0.60, a strike price of $40, and 3...

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Answer 1

Answer #1

Using put call parity
P=C+X/(1+r)^t-S+D/(1+r)^t'=0.60+40/(1+3%)^(3/12)-39.60+0.80/(1+3%)^(2/12)=1.50157

Answer 2

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