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Suppose a stock can be purchased for $8.18. A put option, with a strike price of $10.60 and maturity of 1 month, on the stock
Suppose a stock can be purchased for $8.18. A put option, with a strike price of $10.60 and maturity of 1 month, on the stock can be purchased for $4.36. The risk-free rate is 1.82% per month. What is the premium of a call that has a strike price of $10.60 and 1 month maturity?
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To calculate the premium of a call option we can use the putcall parity formula wh...
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
