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Calculate the price of a put option

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Reference no: EM133061997

A stock currently trades for $128 per share. Options on the stock are available with a strike price of $125. The options expire in 10 days. The risk free rate is 3%% over this time period, and the expected volatility is 0.35. Use put-call parity to calculate the price of a put option using the value of the call calculated with the Black-Scholes model. Remember to show your work.

Reference no: EM133061997

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