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For European options on a stock, Given: The stock price is 43. The continuous dividend rate of the stock is 0.02. The strike price for
For European options on a stock, Given:
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The stock price is 43.
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The continuous dividend rate of the stock is 0.02.
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The strike price for each option is 46.
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The continuously compounded risk-free interest rate is 0.04.
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The price of a call option on the stock is 2.
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The price of a put option with the same time to expiry as the call option is 2.30.
Determine the time to expiry for these options.
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