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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
