Question
Tails-I-Win-Heads-Tough-Luck-Taxpayers (COIN), a large investment bank, has a stock price of $183. COIN pays no dividends. A call option on COIN stock with an exercise
Tails-I-Win-Heads-Tough-Luck-Taxpayers (COIN), a large investment bank, has a stock price of $183. COIN pays no dividends.
A call option on COIN stock with an exercise price of $180 and an expiration date 8 months from now is worth $18 today.
The (continuously compounded) risk-free rate is 5%.
Compute the value of a put option on COIN stock with an exercise price of $180 and an expiration date 8 months from now. Please explain.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
