Question
15) The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of
15) The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $56 sells for $6. What is the value of a put option, assuming the same strike price and expiration date as for the call option?
a.$12.00
b.$15.36
c.-$3.17
d.$8.83
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
13th edition
1285198840, 978-1285198842
