Question
A European call option on IBM stock costs $81. It expires in 0.5 years and has a strike price of $800. IBM's stock price is
A European call option on IBM stock costs $81. It expires in 0.5 years and has a strike price of $800. IBM's stock price is $850. The risk-free rate is 1.7% (continuously compounded).
What should be the price of the put option with the same strike price and expiration date?
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Bond Markets Analysis And Strategies
Authors: Frank J Fabozzi
8th Edition
013274354X, 9780132743549
