Question
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year put option with a strike price of $55
The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year put option with a strike price of $55 sells for $9. What is the value of a call option, assuming the same strike price and expiration date as for the call option?
a. $9
b. $7.80
c. $7.20
d. $7
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Investing For Women Smart Strategies To Start Investing Now With Confidence Low Risk And Minimal Effort
Authors: Mike Hartley ,Hannah Rosenstein
1st Edition
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