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A call option with strike $50 on a stock currently priced at $45 costs $9

A call option with strike $50 on a stock currently priced at $45 costs $9. A put option with the same strike and time to expiration as the call option costs $11. If the risk-free rate is 8%, and the stock pays a continuous dividend at a rate of 4%, what is the time to expiration for the two options?

(A) 9 months(B) 12 months(C) 18 months(D) 24 months(E) 36 months

May 18 2018 View more View Less

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