20. Putcall parity (S21-2) In September 2020, Facebooks share price was about $250. A ninemonth call on

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20. Put–call parity (S21-2) In September 2020, Facebook’s share price was about $250. A ninemonth call on the stock, with an exercise price of $250, sold for $38. The risk-free interest rate was 2% a year. How much would you be willing to pay for a put on Facebook stock with the same maturity and exercise price? Assume that the Facebook options are European options. (Note: Facebook does not pay a dividend.)

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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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