Determine does put-call parity hold

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Reference no: EM131477356

Question: A put option with 1 year to maturity is written on a stock. The current underlying stock price is $20. The option's exercise price is $18, the interest rate is 3.74%, and the stock's volatility is 32.7%. The price of a call option written on the same stock with the same exercise price and time to maturity is $4.3 Use Black and Scholes model to determine: Does put-call parity hold?

Reference no: EM131477356

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