Question
LOL Ltd has a current share price of $60. A call option written on LOL, which has a strike price has $55 and 6 months
LOL Ltd has a current share price of $60. A call option written on LOL, which has a strike price has $55 and 6 months to expiry, is trading at $11.69.
If the riskfree rate of interest is 6% pa (continuously compounded),what is the correct price for a put optionon LOL with $55 strike price and 6 months to expiry?
Donotenter the dollar sign "$" in your answer.Your answer should have at least two decimal places.
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
