The common stock of Triangular File Company is selling at $90. A 26-week call option written on

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The common stock of Triangular File Company is selling at $90. A 26-week call option written on Triangular File’s stock is selling for $8. The call’s exercise price is $100. The riskfree interest rate is 10% per year.

a. Suppose that puts on Triangular stock are not traded, but you want to buy one. How would you do it?

b. Suppose that puts are traded. What should a 26-week put with an exercise price of $100 sell for?

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Principles Of Corporate Finance

ISBN: 9780077398040

10th Edition

Authors: Richard Brealey

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Question Posted: Jul 31, 2024 05:00 AM

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The common stock of Triangular File Company is selling at $90. A 26-week call option written on

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Principles Of Corporate Finance

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