Question
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 for all maturities is 6% and the time to maturity is one year. What, to the nearest cent, is the price of a one-year European put option on the stock with a strike price of $50?
What is the answer to the question above if a dividend of $3 is expected in six months?
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
