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QUESTION 4 ANSWER ALL PARTS OF THIS QUESTION a. T.R.E. Industries is currently trading for 27 per share. The stock pays no dividends. A one-
QUESTION 4 ANSWER ALL PARTS OF THIS QUESTION a. T.R.E. Industries is currently trading for 27 per share. The stock pays no dividends. A one- year European put option on T.R.E. with a strike price of 30 is currently trading for 2.60. If the risk-free interest rate is 6% per year, what is the price of a one-year European call option on T.R.E. with a strike price of 30? (5 marks) A. 1.10 B. 1.20 C. 1.30 D. 1.40 E. None of the above
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