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Estimate the price of the 3-month call option

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Reference no: EM132500984

Suppose that the current stock price is $52 and the risk-free rate is 5%. You have found a quote for a 3-month put option with an exercise price of $50. The put price is $1.5 , but due to light trading in the call options, there was not a listed quote for the 3-month $50 call. Estimate the price of the 3-month call option.

Reference no: EM132500984

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