Question
Problem 25-3 Put - Call Parity [LO1] A stock is currently selling for $75 per share. A call option with an exercise price of $80
Problem 25-3 Put - Call Parity [LO1]
| A stock is currently selling for $75 per share. A call option with an exercise price of $80 sells for $3.75 and expires in three months. |
| If the risk-free rate of interest is 3.5 percent per year, compounded continuously, what is the price of a put option with the same exercise price? (Round your answer to 2 decimal places. (e.g., 32.16)) |
| Put price | $ |
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A Practical Guide To Quantitative Finance Interviews
Authors: Xinfeng Zhou
1st Edition
1735028800, 978-1735028804
