A call option on Jupiter Motors stock with an exercise price

A call option on Jupiter Motors stock with an exercise price of $55 and one-year expiration is selling at $8. A put option on Jupiter stock with an exercise price of $55 and one-year expiration is selling at $6.5. If the risk-free rate is 10% and Jupiter pays no dividends, what should the stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Solution

using call put parity

8 + 55/1.10 = 6.5 + price of the stock

price of the stock = 51.50