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28 Sep 2019
A call option with an exercise price of $65 and three months to expiration has a price of $4.20. The stock is currently priced at $64.80, and the risk-free rate is 4 percent per year, compounded continuously. What is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Put option price
| A call option with an exercise price of $65 and three months to expiration has a price of $4.20. The stock is currently priced at $64.80, and the risk-free rate is 4 percent per year, compounded continuously. What is the price of a put option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| Put option price |
Jean KeelingLv2
28 Sep 2019
Related questions
| What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| Stock price | = | $70 |
| Exercise price | = | $65 |
| Risk-free rate | = | 4.20% per year, compounded continuously |
| Maturity | = | 4 months |
| Standard deviation | = | 60% per year |
