Question
5. Go through Part 2 of Lab 4 Instructions. Suppose WMT (Walmart Inc.) Stock and Options information today is provided below. A Call option that
5. Go through Part 2 of Lab 4 Instructions.
Suppose WMT (Walmart Inc.) Stock and Options information today is provided below.
A Call option that expires in one year at an expiration price of $150 is trading at $16.50.
A Put option that expires in one year at the same exercize price is trading at $12.15.
One year risk-free interest rate is 2.10%.
What should be the implied Stock price today, based on the Put-Call Parity? Enter your answer in the following format: 123.45
9. Exxon Mobile (XOM) stock and options data is provided below.
INPUTS | |
Standard deviation (annual, ) | 23.50% |
Expiration (in years, T) | 1.000 |
Risk-free rate (annual, Rf) | 1.22% |
Stock Price (P) | 142.07 |
Exercise price (X) | 150 |
Dividend yield (annual, ) | 1.54% |
What is the XOM Put value?
Enter your answer in the following format: 12.34
Hint: Answer is between 17.50 and 23.97
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