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#14 please You are given the following information regarding stock for company XYZ, : The stock does not pay dividends and has a current value
#14 please
You are given the following information regarding stock for company XYZ, : The stock does not pay dividends and has a current value of $62 The risk-free interest rate, compounded continuously, is 4.5%. A European put option on one share of XYZ stock with a strike price of $66 that expires in one year costs $1.47. Determine the price of a European call option on one share of XYZ stock with a strike price of $66 that expires in one year. The current price of a stock is $50 and the risk free rate of return is 3.8%. An individual that owns the stock purchases a six-month European Put option with a strike price of $53. The premium paid for the put option is $1.80. The person then sells a six-month European Call option with a strike price of $60 and receives a premium of $0.45. Suppose at the end of the six-month period, the price of the stock is $62 and that you sell the stock (either in the market or because the Call option you sold is exercised). Determine the profit, if anyStep by Step Solution
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