Question
A call option with 6 months to expiration currently sells for $0.70. A put option with the same expiration sells for $0.78. The options are
A call option with 6 months to expiration currently sells for $0.70. A put option with the same expiration sells for $0.78. The options are European style. The risk-free rate is 2 percent and the strike price of both options is $17.50. What is the current stock price?
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
