18 PutCall Parity BP plc shares are currently selling for 4.29 per share. A put option with...

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18 Put–Call Parity BP plc shares are currently selling for £4.29 per share. A put option with an exercise price of £4.40 sells for £0.25 and expires in three months. If the risk-free rate of interest is 2.6 per cent per year, compounded continuously, what is the price of a call option with the same exercise price?

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Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

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