There is a call options on ABC Corporation trading at $54 while the put options is trading at $6. Both of the options are having the strike price of $60. Besides that, the stock of ABC Corporation is currently trading at $90. By applying put-call parity, calculate the price for put options with a strike price of $70 if the call options with the same strike price is selling for $45.
There is a call options on ABC Corporation trading at $54 while the put options is trading at $6. Both of the options are having the strike price of $60. Besides that, the stock of ABC Corporation is currently trading at $90. By applying put-call parity, calculate the price for put options with a strike price of $70 if the call options with the same strike price is selling for $45.
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 1P
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There is a call options on ABC Corporation trading at $54 while the put options is trading at $6. Both of the options are having the strike price of $60. Besides that, the stock of ABC Corporation is currently trading at $90.
By applying put-call parity, calculate the price for put options with a strike price of $70 if the call options with the same strike price is selling for $45.
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