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A stock is valued at $25.75 a share. A European 6-month call option has a strike price of $25 and an option premium of $1.40.
A stock is valued at $25.75 a share. A European 6-month call option has a strike price of $25 and an option premium of $1.40. The market rate is 9.5 percent and the risk-free rate is 2.5 percent. What is the price of a European 6-month put option with a $25 strike price?
| $1.61 | |
| $1.48 | |
| $0.34 | |
| $0.00 | |
| $0.09 |
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