Question
A put option that expires in six months with an exercise price of $60 sells for $4.95. The stock is currently priced at $56, and
A put option that expires in six months with an exercise price of $60 sells for $4.95. The stock is currently priced at $56, and the risk free rate is 3.6 percent per year, compounded continuously.
What is the price of a call option with the same exercise price?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
