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Example: So = 100; X = 120; ST(+) = 140; ST(-) = 80; == T = 1 year, r = 5%; Co = 9.5
Example: So = 100; X = 120; ST(+) = 140; ST(-) = 80; == T = 1 year, r = 5%; Co = 9.5 What is the (fair) price of an equivalent put, using the put-call-parity? Calculate the state-dependent final values of the call and the put!
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
