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 percent, 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
Q81: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q82: Derivative securities can be used
A) by investors
Q83: You own a call option and put
Q84: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q85: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q87: According to put/call parity:
A) Stock price +
Q88: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q89: USE THE INFORMATION BELOW FOR THE FOLLOWING
Q90: A one-year call option has a strike
Q91: An equity portfolio manager can neutralize 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