Question
A non-dividend-paying stock currently sells for $280. A 2-year European call option on the stock with the strike price of $260 sells for $40. The
A non-dividend-paying stock currently sells for $280. A 2-year European call option on the stock with the strike price of $260 sells for $40. The risk-free rate is 2% per annum. If there is no arbitrage, what should be the price of the 2-year European put option with the same strike price?
Group of answer choices
$9.805
$12.174
$14.851
$29.805
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
13th edition
978-1285027371, 128502737X, 978-1133541141
