The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6% LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6% LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
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 $33, and the annual risk-free rate is 6%. A call...
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The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6%
LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
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