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February call options on Alphabet Corporation (NASDAQ: GOOG) which expire in exactly three months and have an exercise price of $25 were quoted Friday to
February call options on Alphabet Corporation (NASDAQ: GOOG) which expire in exactly three months and have an exercise price of $25 were quoted Friday to have a premium of $1.95. On the same day Alphabet stock was trading at $25.57. If the risk free rate is 2.5% and (of course) Alphabet is paying no dividends, what is the parity price of GOOG February Puts that could be exercised for $25 per share? Enter the value as dollars without the "$" sign. So, $5 would be entered as "S" or as "5.00" but not as "$5." Carry your calculation to the level of pennies
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