Question
The price of the stock is $37 and interest rates are 8% per annum continuously compounded and there are 2 years to expiration. If the
The price of the stock is $37 and interest rates are 8% per annum continuously compounded and there are 2 years to expiration. If the price of the Call with strike of 40 is $9 per share quoted price and the price of the Put with strike of 40 is $7 per share quoted price then
Find the quoted per share price of the 40 conversion, correct ot 2 places fater the decimal point. The price is __________
Find the quoted per share value of the 40 conversion, correct to 2 places after the decimal point. The value is _________
Find the price of synthetic stock using a strike of 40, correct to 2 places after the decimal point. The price is ________
Would you buy the natural stock or the synthetic stock.
Natural B. Synthetic
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