Question
11. Marriot Corp. common stock is priced at $45 per share. The company just paid its $0.75 quarterly dividend. Annual interest rates are 2.0%, continuously
11. Marriot Corp. common stock is priced at $45 per share. The company just paid its $0.75 quarterly dividend. Annual interest rates are 2.0%, continuously compounded. A $40.00 strike European call, maturing in 6 months, sells for $6.50. What is the price of a 6-month, $40.00 strike put option?
Question options:
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$2.18
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$2.59
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$3.41
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$1.10
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1. Consider the following data for a European option: Expiration = 3 months; Stock price = $105; Exercise price = $80; Call option price = $30; Risk-free rate = 0.8% continuously compounded annual rate. The stock does not pay dividends. Using put-call parity, calculate the price of a put option having the same exercise price and expiration date.
Question options:
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$4.84
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$5.16
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$4.36
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$7.02
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