Question
The current price of a stock is $32, and the annual risk-free rate is 5%. A call option with a strike price of $31 and
The current price of a stock is $32, and the annual risk-free rate is 5%. A call option with a strike price of $31 and with 1 year until expiration has a current value of $6.68. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.
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Principles of Accounting
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
12th edition
978-1133603054, 113362698X, 9781285607047, 113360305X, 978-1133626985
