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Actuarial science Consider a 6-year 8% coupon bond with a face value of 1,000. It pays semi-annual coupons and is issued today. A call and

Actuarial science

Consider a 6-year 8% coupon bond with a face value of 1,000. It pays semi-annual coupons and is issued today. A call and put (both with the same strike price of 1,050 and same 1-year maturity) on that bond are available. The call is priced at 80. The continuously compounded interest rate is 6%. Calculate the put price.

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