Question
A stock is selling for $40.34 per share. A CALL option with strike (exercise price) of $40 and maturity of 1 year is selling for
A stock is selling for $40.34 per share. A CALL option with strike (exercise price) of $40 and maturity of 1 year is selling for $5.10 (this is call option price). Risk-free rate for discounting over 1 year (APR) is 3%. What is the price of a PUT option on this stock, with strike price of $40, and maturity of 1 year?
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Personal Finance
Authors: Jeff Madura
6th Edition
0134082915, 9780134082912
