Question
Given the following parameters use put-call parity to determine the price of a put option with the same exercise price. Current stock price: $48.00 Call
Given the following parameters use put-call parity to determine the price of a put option with the same exercise price.
| Current stock price: | $48.00 |
| Call option exercise price: | $50.00 |
| Sales price of call options: | $3.80 |
| Months until expiration of call options: | 3 |
| Risk free rate: | 2.6 percent |
| Compounding: | continuous |
| Price of put option = $4.52 |
| Price of put option = $6.13 |
| Price of put option = $5.48 Please show your work in detail to get to one of the coices above. |
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Fundamentals Of Water Finance
Authors: Michael Curley
1st Edition
1498734170, 978-1498734172
