Question
A one-month European call option on a non-dividend-paying stock is currently selling for $1. The stock price is $47, the strike price is $50, and
A one-month European call option on a non-dividend-paying stock is currently selling for $1. The stock price is $47, the strike price is $50, and the risk-free rate is 6% per annum (continuously compounded). What is the time value of a one-month European put on the same stock with the same strike price?
A. $3.00
B. $3.75
C. $0.75
D. $0.00
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Finance For Managers
Authors: E. Martinez Abascal
1st Edition
0077140079, 9780077140076
