Question
The price of a non-dividend-paying stock is $18 and the price of a three-month European call option on the stock with a strike price of
The price of a non-dividend-paying stock is $18 and the price of a three-month European call option on the stock with a strike price of $20 is $1.5. The risk-free rate is 4% per annum. What is the price of a three-month European put option with a strike price of $20?
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Personal Finance
Authors: Jeff Madura
3rd Edition
0321357973, 978-0321357977
