A one-year European call option on ABX corporation with a strike price of $50 is currently trading for $4.30,and a one-year European put option on ABX with the same strike price is currently trading for $1.47.If the stock pays no dividends and the risk free rate is 4% per year,what is the current price of ABX stock?
A) $39.79
B) $41.57
C) $45.25
D) $50.91
E) $53.85
Correct Answer:
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