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February call options on Facebook INC (NASDAQ: FB) which expire in exactly three months and have an exercise price of $24 were quoted Friday to
February call options on Facebook INC (NASDAQ: FB) which expire in exactly three months and have an exercise price of $24 were quoted Friday to have a premium of $1.95. On the same day Facebook stock was trading at $24.57. If the risk free rate is 2.5% and (of course) Facebook is paying no dividends, what is the parity price of FB February Puts that could be exercised for $24 per share?
Please answer with formula and steps if possible, thank you.
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