Answer must be A, B, or C to be correct. Please explain. Thank you.
Given the following parameters use put-call parity to determine the price of a put option with the same exercise price.
Current stock price: $48.00
Call option exercise price: $50.00
Sales price of call options: $3.80
Months until expiration of call options: 3
Risk free rate: 2.6 percent
Compounding: continuous
A) Price of put option = $4.52
B) Price of put option = $6.13
C) Price of put option = $5.48