Problem

A call option on Jupiter Motors stock with an exercise price of $75 and one-year expirat...

A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $3. A put option on Jupiter stock with an exercise price of $75 and one-year expiration is selling at $2.50. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be?

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Solutions For Problems in Chapter 16