Currently, company ABC's stock is selling at 50.54 per share, its 5-month call option is selling at

Fantastic news! We've Found the answer you've been seeking!

Question:

Currently, company ABC's stock is selling at 50.54 per share, its 5-month call option is selling at 4.13 per call with strike price 54.50. If the annual risk-free rate is 3.29%, what would be the price for the 5-month put option with the same strike price?

Posted Date: May 11, 2024 04:56 AM

See More Questions

13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
How many orders of magnitude is 3 . 2 \ times 1 0 - 9 m smaller than 0 . 0 0 0 0 4 m ?
During a recent year, Nicoles Getaway Spa (NGS) reported net income of $ 2,300. The company reported the following activities: a. Increase in inventory of $ 400. b. Depreciation of $ 3,000. c....
Researcher P. Paronuzzi modeled the effects of a rock wall collapsing on a slope in the article "Rockfall-Induced Block Propagation on a Soil Slope, Northern Italy" (Environmental Geology, Vol. 58,...
During a period of inflation, many accountants believe that financial reports prepared under the historical cost convention are subject to the following major limitations: 1 inventories are...
Pioneer Chicken advertises lite chicken with 30% fewer calories than standard chicken. When the process for lite chicken breast production is in control, the average chicken breast contains 420...
AMAZON.COM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD OPERATING ACTIVITIES: Net income Year Ended December 31, 2019...
(a3) Determine ending inventory under weighted average cost. (Round weighted average cost per unit to 2 decimal places, eg. 52.75 and final answer to O decimal places, e.g. 5,275) Ending inventory...
There are two economies both in recession. In the first economy all workers have long-term contracts that guarantee high nominal wages for the next five years. In the second economy all workers have...
You will continue your role as the Project Coordinator at ABC Inc., reporting to Jenny John,Director of Project Management (PM). You have completed your project (with a budget between $30,000 to...
Utilizing the following link, COVID-19, explain how COVID-19 procedures have inhibited firms' achievement of economies of scale, essentially hastening the onset of diseconomies of scale. First,...
The Harrod-Domar model, a predecessor of the Solow model, also known as the AK model, uses what one might consider an extreme version of the Cobb-Douglas production function in which capital's share...
Q7. Solve the following system of equations by matrix method. - 3x 2y+3z8 2x+y-z=1 4x-3y+2z4 [10] [20 Q8. By using elementary operations, find the inverse of the matrix A = 5 1 0 LO 1 3 [10]
In a New York modeling agency, a researcher wishes to see if the average height of female models is less than 67 inches, as the chief claims. A random sample of 20 models has an average height of...
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
Griffin Metals Co. has provided the following data: The selling price is expected to be $$300$ per tonne for the first six months and $$310$ per tonne thereafter. Variable costs per tonne are...
Highjinks Corporation's sales department has estimated revenue of 250,000 for your division. 60% of this will be achieved in the first half-year and 40% in the remaining half-year. Variable operating...
The total cost of goods sold for June is a. $103,500 b. $128,800 c. 57,500 d. $232,300

Currently, company ABC's stock is selling at 50.54 per share, its 5-month call option is selling at

Question:

Expert Answer:

To calculate the price of the 5month put option with the same strike price we can use the principles ... View the full answer

Students also viewed these finance questions