# financial management

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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 with 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 exercise price and expiration date as the call option?

• financial management -

V ¨C P + X exp(-rRF t) = \$6.56 - \$33 + \$32 e-0.06(1) = \$6.56 - \$33 + \$30.136 = \$3.696 ¡Ö \$3.70.

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