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Facebook stock (Ticker: FB) is currently trading at $266.20 per share. Consider call and put options with a strike of K = $270 and expiring
- Facebook stock (Ticker: FB) is currently trading at $266.20 per share. Consider call and put options with a strike of K = $270 and expiring in 1 month (expiring on 11/20/2020). Suppose the volatility of FB shares is 46% and r = 0.2% per year (use T=36 days).
- What are the Black-Scholes prices of the call and put?
- What are the option s?
- Show that the option prices obey put-call parity?
- Show that the option s obey put-call parity?
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Understanding The Finance Of Welfare
Authors: Howard Glennerster
2nd Edition
1847421091, 978-1847421098
