Question
The Stock of NYDC is trading at $80.00 a share. The stock does not pay a dividend and the risk free rate is 1.50%.Freddie Fast
The Stock of NYDC is trading at $80.00 a share. The stock does not pay a dividend and the risk free rate is 1.50%.Freddie Fast Trader wants to buy a 9-month call option on the NYDC Company stock with strike price of $90.00. Unfortunately, his Bloomberg does not have a price for this option. However, he notices that a 9-month, $90.00 strike put just traded for $15.00.
What price should Freddie expect to pay for the call option?
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Finance And Economics Discussion Series Measurement Error And Time Aggregation A Closer Look At Estimates Of Output Labor Elasticities
Authors: United States Federal Reserve Board, Marcello Estevao
1st Edition
1288722990, 9781288722990
