A European call option with a strike price of $110.5 and maturity of 7.0 months costs $23.809. The underlying stock price is $128.0. The continuously compounded risk-free rate is 8.75 percent per year. What is the value of a European put option with strike price of $110.5 and maturity of 7.0 months? 6.3091 34.940 6.4389 O46.808 0.81049

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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A European call option with a strike price of $110.5 and maturity of 7.0 months costs
$23.809. The underlying stock price is $128.0. The continuously compounded risk-free
rate is 8.75 percent per year. What is the value of a European put option with strike
price of $110.5 and maturity of 7.0 months?
6.3091
34.940
6.4389
O46.808
O 0.81049
Transcribed Image Text:A European call option with a strike price of $110.5 and maturity of 7.0 months costs $23.809. The underlying stock price is $128.0. The continuously compounded risk-free rate is 8.75 percent per year. What is the value of a European put option with strike price of $110.5 and maturity of 7.0 months? 6.3091 34.940 6.4389 O46.808 O 0.81049
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