Question
When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time
When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time to maturity is 3 months which of the following is the price of a Europeanput optionon the stock?
Select one:
20N(-0.2)-20N(-0.1)
20N(-0.1)-20N(-0.2)
19.7N(-0.1)-20N(-0.2)
19.7N(-0.2)-20N(-0.1
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
