A one year call option has a strike price of 50,expires in 6 months,and has a price of $4.74.If the risk free rate is 3%,and the current stock price is $45,what should the corresponding put be worth?
A) $12.74
B) $10.48
C) $5.00
D) $9.00
E) $8.30
Correct Answer:
Verified
Q60: According to put/call parity
A) Stock price +
Q61: A one year call option has a
Q62: Exhibit 20.1
Use the Information Below for the
Q63: A forward contract is similar to an
Q64: Derivative securities can be used
A) By investors
Q66: Exhibit 20.4
Use the Information Below for
Q67: A buyer of the call option is
Q68: Holding a put option and the underlying
Q69: Exhibit 20.3
Use the Information Below for
Q70: Exhibit 20.1
Use the Information Below for the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents