16. Putcall parity (S21-2) The common stock of Triangular File Company is selling at $90. A 26-week...

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16. Put–call parity (S21-2) 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 risk-free 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?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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