Question
A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently,
A European call option and a European put option on a stock both have a strike price of $45 and expire in 6 months. Currently, the stock price is $47.15 and the put price is $5.36. The risk-free rate is 2% per annum continuous compounding. Calculate the CALL price.
Hint: put-call parity
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
