Underlying information for the call option

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a- i) What would be the market price of six month call option on Ajax's stock , given that the stock currently trade at 70$ and is expected to be either 45$ or 100$ at the end of six months, if the strike price is 80 $. The annual risk free rate of interest is 10%.

ii) What is the value of the six month put option on the stock given the same underlying information for the call option .

b- Verify that put/call parity holds for properly priced call and out options

Reference no: EM13903932

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