Given the following data: Expiration = 6 months; Stock price = $80; exercise price = $75; call option price = $12; risk-free rate = 5% per year. Calculate the price of an equivalent put option using put-call parity:
A) $3.07
B) $5.19
C) $11.43
D) none of the above
Correct Answer:
Verified
Q20: Figure-2 depicts the: Q21: If the volatility of the underlying asset Q22: The higher the underlying stock price: (everything Q24: If the risk-free interest rate increases: Q26: If the underlying stock pays a dividend Q27: For European options, the value of a Q28: Suppose an investor buys one share of Q29: Relative to the underlying stock, a call Q30: Suppose you buy a call and lend Q40: Suppose an investor buys one share of
A) the
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