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: $22.00 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: | $22.00 |
| Call option exercise price: | $25.00 |
| Sales price of call options: | $3.80 |
| Months until expiration of call options: | 6 |
| Risk free rate: | 2.2 percent |
| Compounding: | continuous |
| Price of put option = $6.53 |
| Price of put option = $6.26 |
| Price of put option = $7.08 |
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
14th edition
1337090581, 978-1337090582
