The common stock of the C. A. L. L. Corporation has been trading in a narrow range around $95 per share for months, and you believe it is going to stay in that range for the next 3 months. The price of a 3-month put option with an exercise price of $95 is $6.00.
If the risk-free interest rate is 9% per year, what must be the price of a 3-month call option on C. A. L. L. stock at an exercise price of $95 if it is at the money?
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