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Heetal's stock now trades (S) at $80 per share. Possible year-end values are Sp. r...

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Finance

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Heetal's stock now trades (S) at $80 per share. Possible year-end values are Sp. r =$60 and SUT$110. The risk- free rate is 8%. T= 1 year from now Etime to maturity. Call and put options with the same strike price and expiration dates are available. Only the put option price is accurately quoted below. Using Put/Call Parity find the true price of the call option, on a per share basis. Strike Price Per Share Put Cost Per Share Call Cost $12.93 $7.15 $90 A28. What is the true price of the call option on a per share basis? (a) $6.78 (b) $9.12 (c) $8.58 (d) $9.85 (e) $10.13

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