Question
The current stock price is 1000, When the strike price is $970, the call option price is 109.2, the put option is 60.18, when the
The current stock price is 1000, When the strike price is $970, the call option price is 109.2, the put option is 60.18, when the strike price is 1050, the call price is 71.802.They will expire after 6 month.
a)Find the effective 6 month interest rate?
b) compute the 1050-stike put price?
c)If I buy a 1050 strike straddle,in what spot price range at expiation will I make profit ?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
