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 $28.
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 $28. Assume the risk-free rate is 10%. What, to the nearest cent, is the price of a European put option with a strike price of $33?
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
4th Edition
1119835550, 978-1119835554
