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Trader Moe stock is trading for $115 -There is a call option on the stock with 4 months (0.3333 yrs) to expiration w/ a strike
Trader Moe stock is trading for $115
-There is a call option on the stock with 4 months (0.3333 yrs) to expiration w/ a strike price of $105
-There is a put option on the stock with 4 months (0.3333 yrs) to expiration w/ a strike price of $105
The risk free rate is 8%
1. What is the options market price, exercise value, and is it in the money, at the money, or out the money?
2. If the call option is trading for $9.00, then what should be the price of a put option with the same strike price and maturity?
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