Question
You have access to the underlying $S$, which has an initial price $S_0 = 8$, bonds that pay $1$ at time-$T$, where $T=1$. The interest rates are $0.02$, continuously compounded. Finally, you have access to three different put options of varying strikes. The puts are given in the format of $(\text{Strike } K, \text{Price } C_0)$ $$ \begin{align*} (5, 0.4) \\ (10, 3.2) \\ (15, 5.6) \\ \end{align*} $$ Find the time-$0$ price of a call option with strike $K = 10$. Round to two decimal points.