Question
State the put-call parity equation. Given that a one year to maturity call option with a strike k=100 on a stock who price is 90
State the put-call parity equation. Given that a one year to maturity call option with a strike k=100 on a stock who price is 90 today has a value of 1.75, what is the price of an associated put option with strike k=100 and one year maturity if the risk free rate is r=.05? Provide an interoperation of why the price your found for the put is greater or less than that of the call.
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
