Question
Find the PUT option price using the following data: S 0 = $215 X = $220 Risk-free Int Rate = 5% Two possibilities of S
Find the PUT option price using the following data:
S0 = $215
X = $220
Risk-free Int Rate = 5%
Two possibilities of ST at expiration: $200 or $250
Expiration: 2 years from today
Using the information from Q1, find the CALL option price. Assume the call option has the same data (S0, X, RF rate, ST, expiration) as the put. Hint: use put-call parity.
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
