Question
The price of a European call option on Furnituria with a strike price of $128.68 is $11.39. The stock price is $129.55, the continuously compounded
The price of a European call option on Furnituria with a strike price of $128.68 is $11.39. The stock price is $129.55, the continuously compounded risk-free rate (all maturities) is 4.97% and the time to maturity is one year. A dividend of $1.80 is expected to be paid by Furnituria in six months. What is the price of a one-year European put option on Furnituria with a strike price of $128.68?
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Global Banking
Authors: Roy C Smith, Ingo Walter, Gayle DeLong
3rd Edition
0195335937, 9780195335934
