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The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the
- The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year.
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- What is the price of a one-year European put option on the same stock with a strike price of $50?
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- Draw the diagram to show how the price of the put in (a) can be obtained with the information of the specified call option.
- C. How will your answer in (a) change if there is a dividend of $1 to be paid in 3 months?
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Day Trading For Beginners 7 Steps To Earning $2 000 Per Month Day Trading In Less Than 20 Hours A Week
Authors: David Princeton
1st Edition
1511541202, 978-1511541206
