Question
Bank of America (BAC) is currently trading for $15 per share. The stock pays no dividends. A one-year European call option on BAC with a
Bank of America (BAC) is currently trading for $15 per share. The stock pays no dividends. A one-year European call option on BAC with a strike price of $16 is currently trading for $1.25. If the risk-free interest rate is 2% per year, then the price of a one-year European put option on BAC with a strike price of $16 will be closest to:
| $1.94 | ||
| $1.25 | ||
| $0.98 | ||
| $2.25 |
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Finance In America An Unfinished Story
Authors: Kevin R. Brine, Mary Poovey
1st Edition
022650204X, 978-0226502045
