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The common stock of Triangular File Company is selling at $109. A 13-week call option written on Triangular File's stock is selling for $27. The
The common stock of Triangular File Company is selling at $109. A 13-week call option written on Triangular File's stock is selling for $27. The call's exercise price is $119. The risk-free interest rate is 7% per year. a. Suppose that puts on Thangular stock are not traded, but you want to buy one. Which combination will produce the same results? Buy call, invest PV[EX), sell stock short Sell call, invest PV(EX), sell stock short Buy call, lend PV/EX), buy stock Sell call, lend PV(EX), buy stock b. Suppose that puts are traded. What should a 13-week put with an exercise price of $119 sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Put option price
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