Consider four options on the TA-stock that matures in one years time: a put option with strike $90 and a premium $3.00, a put option with strike $100 and a premium of $12.25, a call option with strike $100 and a premium of $28.50, a call option with strike $110 and a premium of $19.75. The risk free interest rate is 22.32%. What is the price of the TA-stock, if we assume there are no transaction costs and the market is free of arbitrage? Your answer should be a number rounded off to two decimals. Use “.” as decimal separator. So if your solution is 52.4578 USD then you should answer: 52.46.
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