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LOL Ltd has a current share price of $60. A put option written on LOL, which has a strike price has $58 and 6 months to expiry, is trading at $3.27.
If the riskfree rate of interest is 6% pa (continuously compounded), what is the correct price for a call option on LOL with $58 strike price and 6 months to expiry?
Do not enter the dollar sign "$" in your answer. Your answer should have at least two decimal places.
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