Question
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates domestic cable networks under the
The Walt Disney Company, together with its subsidiaries, operates as an entertainment company worldwide. The company's Media Networks segment operates domestic cable networks under the Disney, ESPN, Freeform, FX, and National Geographic brands; and television broadcast network under the ABC brand, as well as eight owned domestic television stations. The current price of Disney stock is $45, the annual risk-free rate is 6%, and a 6-month call option with a strike price of $50 sells for $6.20.
Compute the value of a Disney put option, assuming the same strike price and expiration date as for the call option?
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