Question
The price of a European call option on a non-dividend-paying stock with a strike price of $34 is $4. The stock price is $37, the
The price of a European call option on a non-dividend-paying stock with a strike price of $34 is $4. The stock price is $37, the continuously compounded risk-free rate (all maturities) is 3% and the time to maturity is six months What is the price of a six-month European put option on the stock with a strike price of $34?
A. $1.49
B. $2.49
C. $5.00
D. $4.00
E. $0.49
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The Handbook Of Financial Instruments
Authors: Frank J. Fabozzi
1st Edition
0471220922, 978-0471220923
