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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 |
A) Price of put option = $5.48
B) Price of put option = $4.52
C) Price of put option = $6.13
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