Current value of a call option on the stock

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You can buy calls and/or put options on a stock with a current price of $68.00. The striking price for either option is $50.00. A put option with that striking price has a current value of $4.80. The prevailing risk-free rate is 9.00%. What must be the current value of a call option on the stock? Both options (calls and puts) written on the same stock and both with 1 year until expiration. *** In your calculations, use simple discounting instead of continuous discounting.

Reference no: EM132584800

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