The market price of a European call is $3.00 and its price given by Black-Scholes model with
Question:
The market price of a European call is $3.00 and its price given by Black-Scholes model with a volatility of 30% is $3.50. The price given by this Black-Scholes model for a European put option with the same strike peice and time to maturity is $1.00. What should the market price of the put option be? Explain the reasons for your answer.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: