Question
Trip Advisor (Ticker: TRIP) has options traded on it in the OTC market. TRIP pays no dividend. You cant get a quote on TRIP but
Trip Advisor (Ticker: TRIP) has options traded on it in the OTC market. TRIP pays no dividend. You cant get a quote on TRIP but you observe the following prices on European put and call options on TRIP:
Strike Maturity (T) Call Price Put Price
100 6 months $7.00 $7.00
You receive a call from a client wishing to go long in a forward contract on TRIP stock. What would be a fair forward price to quote your client?
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Fundamentals Of Corporate Finance
Authors: Stephen A Ross, Randolph W Westerfield, Bradford D Jordan
7th Edition
0073134295, 9780073134291
