Question

A 4-month, $25 call option on Teller stock has an option premium of $0.25. The 4-month, $25 put option has an option premium of $0.80. The risk-free rate is 3 percent. The options are European-style. What is the price of Teller stock?
A. $24.20
B. $24.53
C. $24.62
D. $25.97
E. $26.08

Answer

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