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Suppose that Kids Kendo (KK) is currently trading for 10 per share. The stock pays no dividends. A one-year European put option on KKs stock

  1. Suppose that Kids Kendo (KK) is currently trading for 10 per share. The stock pays no dividends. A one-year European put option on KKs stock with a strike price of 12 is currently trading for 1.80. The risk-free interest rate is 6% per year. Calculate the fair price of a one-year European call option on Kids Kendo with a strike price of 12. Please round the answer to the nearest 0.001.

  1. 0.479
  1. 4.3
  1. 0.329
  1. 0.279
  1. None of the above

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