Question 11

9. Put-Call Parity (LO4, CFA1) A call option currently sells for $8. It has a strike price of $80 and five months to maturity. A put with the same strike and expiration date sells for $6. If the risk-free interest rate is 4 percent, what is the current stock price? Put-Call Parity (LO4, CFA1) option expires in two months and the current stock price is $51. If the risk-free interest rate is 5 percent, what is the price of a call option with the same strike price? 10. A put option with a strike price of $50 sells for $3.20. The diate Questions 11. Put-Call Parity (L.04, CFA1) A call option is currently selling for $3.90. It has a strike price of $45 and five months to maturity. The current stock price is $47 and the risk-free rate is 4 percent. The stock will pay a dividend of $1.45 in two months. What is the price of a put option with the same exercise price