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4. Use put-call parity to complete the following table of option prices. Do your best to make sure option pricing between months are reasonable. Make
4. Use put-call parity to complete the following table of option prices. Do your best to make sure option pricing between months are reasonable. Make sure the calendar spreads between months make sense. The stock price is $30.10 and the average carry for month 1 is zero, and $.05 in month 2. Month 1 Carry: $0 Puts Calls Strike 25 $.75 $3.60 27.50 30 $1.60 $.50 32.50 Month 2 Carry: $.05 Strike Puts Calls 25 27.50 $2.15 30 32.50 4. Use put-call parity to complete the following table of option prices. Do your best to make sure option pricing between months are reasonable. Make sure the calendar spreads between months make sense. The stock price is $30.10 and the average carry for month 1 is zero, and $.05 in month 2. Month 1 Carry: $0 Puts Calls Strike 25 $.75 $3.60 27.50 30 $1.60 $.50 32.50 Month 2 Carry: $.05 Strike Puts Calls 25 27.50 $2.15 30 32.50
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