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NEED HELP WITH BOTH QUESTIONS PLZ!!!!! 2. Consider call and put options on a non-dividend paying stocks. The price of a call option with a
NEED HELP WITH BOTH QUESTIONS PLZ!!!!!
2. Consider call and put options on a non-dividend paying stocks. The price of a call option with a strike price of $30 and 6 months to maturity is $1.75. If the current stock price is $29.8 and the interest rate is 10% per annum continuously compounded, what is the price of the put option with the same strike price and maturity? ve A. $1.32 B. $1.18 C. $0.96 $0.72 E. $0.48 3. Consider the above but with the only change that the stock would pay a dividend of $1 after 3 months. If the price of the call option is $1.75, what is the price of the put option? A. $2.27 B. $2.13 C. $1.98 D. $1.72 E. $1.46Step by Step Solution
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