Question
A put option that expires in six months with an exercise price of $70 sells for $4.50. The stock is currently priced at $66, and
A put option that expires in six months with an exercise price of $70 sells for $4.50. The stock is currently priced at $66, and the risk-free rate is 4.0 percent per year, compounded continuously. |
What is the price of a call option with the same exercise price? |
A put option and call option with an exercise price of $65 expire in six months and sell for $0.92 and $5.60, respectively. |
If the stock is currently priced at $68.40, what is the annual continuously compounded rate of interest? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
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