A European call option with a strike price of $110.5 and maturity of 7.0 months costs $23.809. The underlying stock price is $128.0. The continuously compounded risk-free rate is 8.75 percent per year. What is the value of a European put option with strike price of $110.5 and maturity of 7.0 months? 6.3091 34.940 6.4389 O46.808 0.81049

A European call option with a strike price of $110.5 and maturity of 7.0 months costs $23.809. The underlying stock price is $128.0. The continuously compounded risk-free rate is 8.75 percent per year. What is the value of a European put option with strike price of $110.5 and maturity of 7.0 months? 6.3091 34.940 6.4389 O46.808 0.81049

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter20: Financing With Derivatives

Section20.A: The Black-scholes Option Pricing Model

Problem 1P

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