A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call price
A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call price
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
Problem 1PS
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![A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? *(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)*
**Call price** [Input box]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2Fb15ac8eb-2623-4fa9-8bc9-3d0eb470cc02%2Fxlqzsok_processed.png&w=3840&q=75)
Transcribed Image Text:A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? *(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)*
**Call price** [Input box]
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Follow-up Question
![A put option that expires in six months with an exercise price of $65 sells for $4.45. The
stock is currently priced at $61, and the risk-free rate is 3.9 percent per year,
compounded continuously. What is the price of a call option with the same exercise
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
X Answer is complete but not entirely correct.
Call price
$ 1.68 X](https://content.bartleby.com/qna-images/question/f00761e5-6ea2-4b64-9c87-d0591240e351/b8f1bcb3-81e6-4142-bf2b-378458e76ea0/batuch_thumbnail.png)
Transcribed Image Text:A put option that expires in six months with an exercise price of $65 sells for $4.45. The
stock is currently priced at $61, and the risk-free rate is 3.9 percent per year,
compounded continuously. What is the price of a call option with the same exercise
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
X Answer is complete but not entirely correct.
Call price
$ 1.68 X
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