A non-dividend-paying stock currently sells for $280. A 2-year European call option on the stock with the

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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

Posted Date: Jun 05, 2024 04:06 PM

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A non-dividend-paying stock currently sells for $280. A 2-year European call option on the stock with the

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