Question
The current stock price of IBM is $70. A put option on IBM with an exercise price of $65 sells for $7 and expires in
The current stock price of IBM is $70. A put option on IBM with an exercise price of $65 sells for $7 and expires in 8 month(s). If the risk-free rate is 1.5% per year, what is the price of a call option on IBM with the same exercise price and expiration date (keep two decimal places)?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
