Option on jupiter stock with exercise price

Reference no: EM131030087

Problem:

A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $7. A put option on Jupiter stock with an exercise price of $80 and one-year expiration is selling at $5.0.

Requirement:

1. If the risk-free rate is 7% and Jupiter pays no dividends, what should the stock price be?

Reference no: EM131030087

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