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Use the concept of put-call parity to answer the following: 1. A stock has one year, $128 strike price options that currently cost $7.33 for
Use the concept of put-call parity to answer the following: 1. A stock has one year, $128 strike price options that currently cost $7.33 for calls and $6.4 for puts. If the risk free rate is 4%, what is the current price of the stock? 2. A stock trades for $203 and has a call that expires in 6 months with a $200 strike price. The call option is trading at $13.15. If the risk free rate is 6%, what is the current value of $200 strike put option on the same stock also with a 6 month expiration
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