Question
A share currently trades for $63. Six month call options and put options with a strike price of $62 sell for $4.00 and $3.00, respectively.
A share currently trades for $63. Six month call options and put options with a strike price of $62 sell for $4.00 and $3.00, respectively. The risk-free rate is 4%. What is the value of the Protective Put?
| A | $62.00 | |
| B | $64.80 | |
| C | $66.00 | |
| D | $67.20 |
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
Concise 6th Edition
324664559, 978-0324664553
