AppliedNumeric answer
A broken parity quote · Part 2 of 3
European call and put options have the same strike of 100 and expiry. There are no dividends or trading costs. The present value of the strike is 98.
The stock moves to 104 and the call is now quoted at 14. The strike present value is still 98. What parity price should the put have?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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