Question
7. (Put-Call Parity) XYZ stock is trading at $100. The effective annual interest rate is 8%, so that 100 dollars lent for 1 year will
7. (Put-Call Parity) XYZ stock is trading at $100. The effective annual interest rate is 8%, so that 100 dollars lent for 1 year will return 108 dollars. A one year call with strike price 110 has a premium of $6. What is the premium for a one year put with strike price 110?
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Cornerstones Of Financial Accounting
Authors: Bertrand Piccard, Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen, Nick Jones
1st Edition
0324657730, 9780324657739
