Use the information below to answer the following question.
Assume a stock price of $42; a risk-free rate of 3.5 percent per year, compounded continuously; a six-month maturity; and a standard deviation of 64 percent per year. If a six-month call with an exercise price of $45 is priced at $6.66, what is the price of the six-month $45 put?
A) $8.57
B) $7.93
C) $8.88
D) $9.07
E) $8.74

Question

Use the information below to answer the following question. 
Assume a stock price of $42; a risk-free rate of 3.5 percent per year, compounded continuously; a six-month maturity; and a standard deviation of 64 percent per year. If a six-month call with an exercise price of $45 is priced at $6.66, what is the price of the six-month $45 put?
A) $8.57 
B) $7.93 
C) $8.88 
D) $9.07 
E) $8.74

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following question. 
Assume a stock price of $42; a risk-free rate of 3.5 percent per year, compounded continuously; a six-month maturity; and a standard deviation of 64 percent per year. If a six-month call with an exercise price of $45 is priced at $6.66, what is the price of the six-month $45 put?
A) $8.57 
B) $7.93 
C) $8.88 
D) $9.07 
E) $8.74

Use the Information Below to Answer the Following Question