Question
For question 3: Value of 1 year call option is approximatly 150,29 SEK as per chegg guidlines I only need help with one question, THE
For question 3: Value of 1 year call option is approximatly 150,29 SEK as per chegg guidlines I only need help with one question,
THE QUESTION I NEED HELP with is question 4, please label steps and calculations without excel. Thanks in advance.
3 .A stock price is currently 1000 SEK. Over each of the next two six-month periods it is expected to go up by 10% or down by 10%. The risk-free interest rate is 8% per annum with continuous compounding. What is the value of a one-year European call option on this stock that has a strike price of 1000 SEK
4.For the situation considered in Problem 3 above, what is the value of a one-year European put option on this stock that has a strike price of 1000 SEK? Verify that the European call option and European put option prices satisfy put-call parity.
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