Question
The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26.
The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. The strike price of a put option is $32.
What is the value of the put option?
A. ) 8.40
B.) 3.60
C. ) 4.80
D.) 2.60
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Your Finances Gods Way A Biblical Guide To Making The Best Use Of Your Money
Authors: Scott LaPierre
1st Edition
0736984003, 978-0736984003
