Question
The price of a European call option on a stock with a strike price of $49.1 is $6.6. The stock price is $42.1, the continuously
The price of a European call option on a stock with a strike price of $49.1 is $6.6. The stock price is $42.1, the continuously compounded risk-free rate (all maturities) is 3.4% and the time to maturity is one year. A dividend of $1 is expected in six months. What is the price of a one-year European put option on the stock with a strike price equal to the call's strike price?
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Finance For Nonfinancial Managers
Authors: Gene Siciliano
2nd Edition
0071824367, 978-0071824361
