Purchase Solution

# Put- Call Parity

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Dynamic energy system stock is currently trading for \$33 per share. The stock pays no dividends. A one-year European put option on Dynamic with a strike price of \$35 is currently trading for \$2.10. If the risk-free interest rate is 10% per year, what is the price of a one-year European call option on Dynamic with a strike price of \$35?

##### Solution Summary

Uses Put-Call Parity condition to find the value of call option.

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Dynamic energy system stock is currently trading for \$33 per share. The stock pays no dividends. A one-year European put option on Dynamic with a strike price of \$35 is currently trading for \$2.10. If the risk-free interest rate is 10% per ...

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