Question
A European put option on Google stock costs $29. It expires in 0.5 years and has a strike price of 800. Google does not pay
A European put option on Google stock costs $29. It expires in 0.5 years and has a strike price of 800. Google does not pay dividends and its stock price is $870. The risk-free rate is 1.6% (EAR).
What should be the price of the call option with the same strike price and expiration date?
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
978-0133866292
