Answered: Calculate premium on put using the…

Calculate premium on put using the given details - Current price - $95 Exercise price - $97 Risk free rate - 8% Years to maturity - 1 Call premium - $20

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 29E

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Question

Calculate premium on put using the given details -

Current price - $95

Exercise price - $97

Risk free rate - 8%

Years to maturity - 1

Call premium - $20

Have rechecked and revised the figures. Correct spot price is $95 not $125 as asked earlier.

Thank you and sorry for previous mistake :)

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