Question
A put option that expires in six months with an exercise price of $70 sells for $5.05. The stock is currently priced at $66, and
| A put option that expires in six months with an exercise price of $70 sells for $5.05. The stock is currently priced at $66, and the risk-free rate is 3.8 percent per year, compounded continuously. |
| What is the price of a call option with the same exercise price? |
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
