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I have this exercise about options: There is a bond that pays coupons of $ 5.00 every three months, currently the bond has a value
I have this exercise about options: There is a bond that pays coupons of $ 5.00 every three months, currently the bond has a value of $ 49.00 and a volatility of 10%. The risk-free rate is 3% effective per year. Determine the price of a put option with a strike price of $ 45 and expiration in 9 months. Show how the PUT CALL parity formula should be in this case and determine with it the value of a call option. Hope someone can help with this, thanks :)
I have this exercise about options: There is a bond that pays coupons of $ 5.00 every three months, currently the bond has a value of $ 49.00 and a volatility of 10%. The risk-free rate is 3% effective per year.
Determine the price of a put option with a strike price of $ 45 and expiration in 9 months.
Show how the PUT CALL parity formula should be in this case and determine with it the value of a call option.
Hope someone can help with this, thanks :)
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Basic Finance An Introduction to Financial Institutions Investments and Management
Authors: Herbert B. Mayo
10th edition
1111820635, 978-1111820633
