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    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?

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    https://brainmass.com/math/calculus-and-analysis/put-call-parity-one-year-european-call-option-288671

    Solution Preview

    Please see the attached file:
    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 ...

    Solution Summary

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

    $2.19

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