Question

Today’s price of Chipotle (CMG) is S0. CMG does not pay dividends. A one-year European call...

Today’s price of Chipotle (CMG) is S0. CMG does not pay dividends. A one-year European call option on CMG has a strike of $450 and a premium of $104.52. A one-year European put option on CMG has a strike of $450 and a premium of $7.57. The c.c. risk-free interest rate is five percent. Assume there is no arbitrage. What is today’s stock price S0?

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­SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

PUT CALL PARITY

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