2. 12. Put-call parity [LO 25.1] A call option with an exercise price of $25 and four...
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2. 12.
Put-call parity [LO 25.1] A call option with an exercise price of $25 and four months to expiration has a price of $2.75. The share is currently priced at $23.80 and the risk-free rate is 2.5 per cent per year, compounded continuously. What is the price of a put option with the same exercise price?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781743768051
8th Edition
Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan
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