Explanation:
This question hinges on the put-call parity equation.
\text{put} = \`$3.15` - \`$45` + \`$45`e^{-0.023(1)} = \`$2.13`(Book 4, Module 60.1, LO 60.a)
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Question 82
The current price of Sunrise Organics is $45, the continuously compounded risk-free rate is 2.3%, and the price of a one-year call option with a strike price of $45 is $3.15. What is the value of a one-year European put option on Sunrise Organics with a strike price of $45?
A
$2.13.
B
$2.27.
C
$2.31.
D
$2.49.
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