A firm's shares are currently trading for €70. You are asked to calculate the price of a 3-month call option. The exerci

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answerhappygod
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A firm's shares are currently trading for €70. You are asked to calculate the price of a 3-month call option. The exerci

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A firm's shares are currently trading for €70. You are asked to
calculate the price of a 3-month call option. The exercise price of
the option is equal to the current share price. European puts with
the same time to expiration, and exercise price trade currently for
€2. The risk-free interest rate is currently 0.2% per month.
Calculate the value of a 3-month call option according to the
Put-Call Parity. Enter your answer with 2 decimals and do not
provide the euro sign in your answer (e.g. write €28.3788 as
28.38).
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