What is the value of a put option if the underlying stock price is $40, the strike price is $33, the underlying stock volatility is 45 percent, and the risk-free rate is 4.8 percent? Assume the option has 145 days to expiration. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Put potion

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What is the value of a put option if the underlying stock price is $43, the strike price is $36, the underlying stock volatility is 48 percent, and the risk-free rate is 5.4 percent? Assume the option has 139 days to expiration. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Put potion $ 1.73 + 1% Explanation In(43/36) + (0.054 + 0.482/2) x 139/365 di 139/365 0.817376 0.48 x de = 0.817376 0.48 139/365 0.52116 The standard normal probabilities are: N(d) = 0.7931 N(-01) = 0.2069 Nd2) = 0.6989 N(-02) = 0.3011 Calculating the price of the put option yields: P = ($36 x = -0.054 x 139/365 *0.3011) ($43 x 0.2069) = $1.73