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28 Sep 2019
Hi I was wondering if if someone could help me solve this question? Thanks! The price of a European put option on a stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. A dividend of $1 is expected in six months. What is the price of a one-year European call option on the stock with a strike price of $50?
Hi I was wondering if if someone could help me solve this question? Thanks! The price of a European put option on a stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. A dividend of $1 is expected in six months. What is the price of a one-year European call option on the stock with a strike price of $50?
Keith LeannonLv2
28 Sep 2019
