Question
A stock has a price of 100. An at-the-money European put option with 1 year maturity sells for $8. If the annual interest rate is
A stock has a price of 100. An at-the-money European put option with 1 year maturity sells for $8. If the annual interest rate is 4%, what must be the price of an at-the-money European call option on the stock with 1 year maturity?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
