The (cc) interest rate is 2.25%. TFS is a non-dividend paying stock trading at So =...
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The (cc) interest rate is 2.25%. TFS is a non-dividend paying stock trading at So = 25.00. a) At what strike price K would the prices of a 11 month European style call and put be equal? b) Is there some strike price at which the put is worth exactly half as much as the call? Give reasons for your answer. (You do not need to compute this strike price, if it even exists.) The (cc) interest rate is 2.25%. TFS is a non-dividend paying stock trading at So = 25.00. a) At what strike price K would the prices of a 11 month European style call and put be equal? b) Is there some strike price at which the put is worth exactly half as much as the call? Give reasons for your answer. (You do not need to compute this strike price, if it even exists.)
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a To find the strike price K at which the prices of a European style call and put are equal we can u... View the full answer
Related Book For
An Introduction to the Mathematics of financial Derivatives
ISBN: 978-0123846822
2nd Edition
Authors: Salih N. Neftci
Posted Date:
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