The current price of a stock is $50, and the annual risk-free rate is 5.5%. A call option with a strike price of $43 and with 1 year until expiration has a current value of $13.78. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?
The current price of a stock is $50, and the annual risk-free rate is 5.5%. A call option with a strike price of $43 and with 1 year until expiration has a current value of $13.78. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 4P: Put–Call Parity
The current price of a stock is $33, and the annual risk-free rate is 6%. A call...
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