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The common stock of Triangular File Company is selling at $90. A six-month call option written on Triangular File's stock is selling for $8. The
The common stock of Triangular File Company is selling at $90. A six-month call option written on Triangular File's stock is selling for $8. The call's exercise price is $100. The risk-free interest rate is 10% per year compounded monthly. (1) Suppose that puts on Triangular stock are not traded, but you want to buy one. How would you do it? (2) Suppose that puts are traded. What should a six-month put with an exercise price of $100 sell for? The common stock of Triangular File Company is selling at $90. A six-month call option written on Triangular File's stock is selling for $8. The call's exercise price is $100. The risk-free interest rate is 10% per year compounded monthly. (1) Suppose that puts on Triangular stock are not traded, but you want to buy one. How would you do it? (2) Suppose that puts are traded. What should a six-month put with an exercise price of $100 sell for
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