A call option with an exercise price of $25 and 9 months to expiration has a price of $4.92. The stock is currently priced at $26.90, and the risk-free rate is 4.1 percent per year, compounded continuously. What is the price of a put option with the same exercise price and expiration date?
A) $3.89
B) $1.57
C) $1.24
D) $2.69
E) $2.26

Question

Quizplus · Accepted Answer

The Answer of A call option with an exercise price of $25 and 9 months to expiration has a price of $4.92. The stock is currently priced at $26.90, and the risk-free rate is 4.1 percent per year, compounded continuously. What is the price of a put option with the same exercise price and expiration date?
A) $3.89
B) $1.57
C) $1.24
D) $2.69
E) $2.26

A Call Option with an Exercise Price of $25 and 9