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please answer both questions. upvote and good feedback will be given for trying and helping. see State 5. A stock price is currently $51.5. It
please answer both questions. upvote and good feedback will be given for trying and helping.
see State 5. A stock price is currently $51.5. It is known that at the end of six months it will be either $55 or $45. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a six-month European put option with a strike price of $50? A. 0.20 B. 0.41 C. 0.26 D. 0.67 E. 0.16 6. A stock price is currently $52. It is known that at the end of six months it will be either $55 or $45. The risk-free interest rate is 10% per annum with continuous compounding, What is the value of a six-month European put option with a strike price of $50? A. 0.30 B. 0.42 C. 0.26 D. 0.67 E. 016 Step by Step Solution
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