Question
Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the
Suppose VS's stock price is currently $20. In the next six months it will either fall to $10 or rise to $30. What is the current value of a put option with an exercise price of $15? The six-month risk-free interest rate is 5% (periodic rate).
| A) | $5.00 | |
| B) | $2.14 | |
| C) | $0.86 | |
| D) | $7.86 |
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Multinational Financial Management
Authors: R M Srivastava
1st Edition
8174466703, 9788174466709
