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Put Call Parity and Value of a Put

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The current price of a stock is $33 and the annual risk free rate is 6%. A call option with a strike price of $32 and 1 year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same strike price and expiration date as the call option?

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Solution Summary

Answers a conceptual question on the derivative pricing: how the price of put and call with same strike price are related.

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