The price of a European call option on a non-dividend-paying stock with a strike price of $48.25 is $4.75. The stock price is $51.05, the continuously compounded risk-free rate (all maturities) is 6.45% and the time to maturity is 6 months. What is the price of a 6 months European put option on the stock with a strike price of $48.25? Answer with three decimal digits accuracy.
The price of a European call option on a non-dividend-paying stock with a strike price of $48.25 is $4.75. The stock price is $51.05, the continuously compounded risk-free rate (all maturities) is 6.45% and the time to maturity is 6 months. What is the price of a 6 months European put option on the stock with a strike price of $48.25? Answer with three decimal digits accuracy.
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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The price of a European call option on a non-dividend-paying stock with a strike price of $48.25 is $4.75. The stock price is $51.05, the continuously compounded risk-free rate (all maturities) is 6.45% and the time to maturity is 6 months. What is the price of a 6 months European put option on the stock with a strike price of $48.25? Answer with three decimal digits accuracy.
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