Calculate the value of a European put option on Apple stock. You are given the following parameter values: • The stock pays no dividends. • The exercise price is $115. • The interest rate is 4%. • The current stock price is $115. • The time to maturity of the option on Apple is 3 months. • The value of a European call option with the same maturity and strike is equal to $12.15.
Calculate the value of a European put option on Apple stock. You are given the following parameter values: • The stock pays no dividends. • The exercise price is $115. • The interest rate is 4%. • The current stock price is $115. • The time to maturity of the option on Apple is 3 months. • The value of a European call option with the same maturity and strike is equal to $12.15.
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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Calculate the value of a European put option on Apple stock. You are given the following parameter values:
• The stock pays no dividends.
• The exercise price is $115.
• The interest rate is 4%.
• The current stock price is $115.
• The time to maturity of the option on Apple is 3 months.
• The value of a European call option with the same maturity and strike is equal to $12.15.
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