A stock currently sells for $34.4. A 6-month call option with a strike price of $41 has a premium of $5.5. Let the continuously compounded risk-free rate be 3%. What is the price of the associated 6-month put option with the same strike (to the nearest penny)? Price = $ b) A stock currently sells for $33.35. A 6-month call option with a strike price of $30.1 has a premium of $2.3,and a 6-month put with the same strike has a premium of $0.9. Let the continuously compounded risk-free rate be 4%. What is the present value of dividends payable over the next 6 months (to the nearest penny)?
A stock currently sells for $34.4. A 6-month call option with a strike price of $41 has a premium of $5.5. Let the continuously compounded risk-free rate be 3%. What is the price of the associated 6-month put option with the same strike (to the nearest penny)? Price = $ b) A stock currently sells for $33.35. A 6-month call option with a strike price of $30.1 has a premium of $2.3,and a 6-month put with the same strike has a premium of $0.9. Let the continuously compounded risk-free rate be 4%. What is the present value of dividends payable over the next 6 months (to the nearest penny)?
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 stock currently sells for $34.4. A 6-month call option with a strike price of $41 has a premium of $5.5. Let the continuously compounded risk-free rate be 3%. What is the price of the associated 6-month put option with the same strike (to the nearest penny)? Price = $ b) A stock currently sells for $33.35. A 6-month call option with a strike price of $30.1 has a premium of $2.3,and a 6-month put with the same strike has a premium of $0.9. Let the continuously compounded risk-free rate be 4%. What is the
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