20. Putcall parity (S21-2) In September 2020, Facebooks share price was about $250. A ninemonth call on
Question:
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.)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
Question Posted: