Discuss about the price of a European put option

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Question: A certain stock pays no dividends and is priced by the market at $19. A European call with three months to expiration and an exercise price of $20 is priced in the market at $1. If the risk free rate is 4% per annum, what do you think the price of a European put option with the same time to expiration a strike price of $20?

Reference no: EM131796001

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