(Solution Download) Calculation of put call parity of A stock is currently selling for $61 per share.


A stock is currently selling for $61 per share. A call option with an exercise price of $65 sells for $4.12 and expires in three months. If the risk-free rate of interest is 2.6 percent per year, compounded continuously, what is the price of a put option with the same

 

exercise price?

 

A put option that expires in six months with an exercise price of $50 sells for $4.89. The stock is currently priced at $53, and the risk-free rate is 3.6 percent per year,

 

compounded continuously. What is the price of a call option with the same exercise price?

 

A put option and a call option with an exercise price of $70 and three months to expiration sell for $2.87 and $4.68, respectively. If the risk-free rate is 4.8 percent per year, compounded continuously, what is the current stock price?

 







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