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EasyOptions & Greeks
Find the Put from Parity
Goldman SachsMorgan Stanley
A 1-year European call struck at 100 trades at 100, pays no dividends, and the continuously-compounded rate is 5%. By put–call parity, what should the European put cost (in dollars)?
Hints
C − P = S − K·e^(−rT).
Solve for P.
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