(Putcall parity [PCP]) Fashion Corporations currently sells for $83 per share. Both a put and call with...

Question:

(Put–call parity [PCP]) Fashion Corporation’s currently sells for $83 per share. Both a put and call with a strike price of $80 and an expiration of 6 months are trading. The put option premium is $2.50, and the risk-free rate is 2%. If put–call parity holds, what is the call option premium?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

Question Posted: