Question
A stock currently sells for $32.00. A 6-month European call option with strike $35.00 has a premium of $2.26. Assuming a 6% continuous dividend yield
A stock currently sells for $32.00. A 6-month European call option with strike $35.00 has a premium of $2.26. Assuming a 6% continuous dividend yield and the continuously compounded, risk-free interest rate of 4%, what is the price of the otherwise identical put option as dictated by put-call parity?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
