A call option is currently selling for $2.9. It has a strike price of $50 and six months to maturity. The current stock price is $52, and the risk-free rate is 3.7 percent. The stock will pay a dividend of $1.7 in two months. What is the price of a put option with the same exercise price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of a put option

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A call option is currently selling for $2.9. It has a strike price of $50 and six months to
maturity. The current stock price is $52, and the risk-free rate is 3.7 percent. The stock
will pay a dividend of $1.7 in two months. What is the price of a put option with the same
exercise price? (Round your answer to 2 decimal places. Omit the "$" sign in your
response.)
Price of a put option
$
Transcribed Image Text:A call option is currently selling for $2.9. It has a strike price of $50 and six months to maturity. The current stock price is $52, and the risk-free rate is 3.7 percent. The stock will pay a dividend of $1.7 in two months. What is the price of a put option with the same exercise price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of a put option $
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