Answered: Assume a 40 July put option is…

Assume a 40 July put option is purchased for GH¢6.50 on a stock selling at GH¢35 per share. If the stock ends up on expiration at GH¢38.75, what will be the value of the put option?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 4P: Put–Call Parity The current price of a stock is $33, and the annual risk-free rate is 6%. A call...

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Assume a 40 July put option is purchased for GH¢6.50 on a stock selling at GH¢35 per share.
If the stock ends up on expiration at GH¢38.75, what will be the value of the put option?

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