QUESTION 9

A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X = $30, r = 5% p.a., sigma = 30% p.a., T = 3 months. Find the premium of this option, rounded to 2 decimals (e.g., 1.15; do NOT include a dollar sign in your answer). NOTE: Use the continuous time version of the Black-Scholes and Put-Call Parity equations

QUESTION 10

A put option expires $23 in the money, meaning that the option's payoff is $23. What is the payoff at expiration of the "corresponding" call option; that is, a call option with the exact same parameter values as the put option?

Question

QUESTION 9

A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X = $30, r = 5% p.a., sigma = 30% p.a., T = 3 months. Find the premium of this option, rounded to 2 decimals (e.g., 1.15; do NOT include a dollar sign in your answer). NOTE: Use the continuous time version of the Black-Scholes and Put-Call Parity equations

QUESTION 10

A put option expires $23 in the money, meaning that the option's payoff is $23. What is the payoff at expiration of the "corresponding" call option; that is, a call option with the exact same parameter values as the put option?

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QUESTION 9 A European PUT option written on one share of Deadwood Lumber Co. stock has the following parameter values: S = $28, X =

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