Question
A stock is currently selling for $70 per share. A call option with an exercise price of $74 sells for $3.50 and expires in three
| A stock is currently selling for $70 per share. A call option with an exercise price of $74 sells for $3.50 and expires in three months. |
| If the risk-free rate of interest is 3 percent per year, compounded continuously, what is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
