# Financial Derivative, European Option [closed]

Market Prices for European put and call options on ABC stock are as below:

Call = $4.5 Put =$6.8

Exercise Price, X =$70 Risk Free Annual Compounded rate r = 5% Time to expiration T = 139 days Current Stock Price S0 =$67.32

A. Determine Synthetic call, put and stock prices using parity relations and explain your observation.

## closed as off-topic by Bob Jansen♦Oct 12 '15 at 18:38

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• Synthetic call = 4.5 - 6.80 + (70/(1.05))^139/360 – Rime Oct 12 '15 at 21:18