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An investor is analyzing the price of three-year European options, with the same strike, on two stocks, A and B, that do not pay dividends. For stock A, the two-year forward price is 1400, the Call option costs 800, and the Put option costs 550. For stock B, the two-year forward price is 1600 and the Put option costs 450. The effective annual interest rate is 7.5%. Calculate the Call price of share B. a) 522 b) 800 c) 861 d) 900 e) 1231
Sagot :
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