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Find price of call and put options with 6 months to maturity, 0.5% monthly risk free interest rate, and $45 exercise price with the following
Find price of call and put options with 6 months to maturity, 0.5% monthly risk free interest rate, and $45 exercise price with the following data from Day 1 to Day 5 Daily closing prices for the underlying stock are as follows: YOU ARE ALLOWED TO WORK IN GROUP OF UP TO 4 STUDENTS (1 or 2 or 3 or 4 students in the same group) Month Stcok price Day 5 $41.00 Day 4 $42.00 Day 3 $38.00 Day 2 $42.00 Day 1 $40.00 life time (life) 20 years coupon interest rate 10.00% annually Face Value 1000 YTM 7.00% Yield to maturiy is YTM Price (PV) ?? ($1,317.82) =+PV(B6,B3,B4*B5,B5) it is a discount bond because it is selling for less than $1000. Please note INT (8%)
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