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Stock price: $200 Exercise (Strike) price: $200 The stock price will either rise to $300 or fall to $125 at the end of one year.
Stock price: $200
Exercise (Strike) price: $200
The stock price will either rise to $300 or fall to $125 at the end of one year.
Risk free rate: 4% annual
Option life: 6 months
CALL OPTION=$44.24
1. What is the value of the put option, given the above call option value?
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There are 3 Steps involved in it
Step: 1
To find the value of the put option we can use the putcall parity relationship whi...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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