Question
James wants to determine the fair value of a put option with strike price $30 due to expire in 2 years. A call with the
James wants to determine the fair value of a put option with strike price $30 due to expire in 2 years. A call with the same strike price and expiration is worth $15. The risk-free rate is 4%. The Spot Price of the underlying asset is $42.
Using Put - Call Parity, calculate the fair value of the put option? (Assume continuous compounding)
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Integrated Accounting For Windows
Authors: Dale A. Klooster, Warren Allen
5th Edition
0324312490, 9780324312492
