Answers
As per the put-call parity equation, P + S = C + (K/ert)
where C = price of call option,
P = price of put option,
S = current stock price
K = strike price of option
r = risk free rate
t = time to expiration in years
We plug in the values to find the price of the call option :
P + S = C + (K/ert)
P + 35 = 12.05 + (25 / e0.06*(6/12))
P = 12.05 + (25 / e0.06*(6/12)) - 35
P = $1.31
The price of put option is $1.31
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