Consider a one-year maturity call option and a one-year put option on the same stock, both with striking price $100. If the risk-free rate is 5%, the stock price is $103, and the put sells for $7.50, what should be the price of the call?
A) $17.50
B) $15.26
C) $10.36
D) $12.26
E) None of the options.

Question

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The Answer of Consider a one-year maturity call option and a one-year put option on the same stock, both with striking price $100. If the risk-free rate is 5%, the stock price is $103, and the put sells for $7.50, what should be the price of the call?
A) $17.50
B) $15.26
C) $10.36
D) $12.26
E) None of the options.

Consider a One-Year Maturity Call Option and a One-Year Put