Question
You are evaluating a stock that selling for $30 per share. Over the investment period(1 year) you think that the stock price might get as
You are evaluating a stock that selling for $30 per share. Over the investment period(1 year) you think that the stock price might get as low as $20 or as high as $40. The relevant interest rate is 6% There is a call option (European) available on the stock with an exercise price of $35.
The price of a put option(using this information) would be approximately:
A.$1.78
B.$1.14
C.$5.80
D.$5.16
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
