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Problem 15-11 Put-Call Parity (LO4, CFA1) A call option is currently selling for $4.40. It has a strike price of $55 and six months to maturity. The current stock price is $57 and the risk-free rate is 3.4 percent. The stock will pay a dividend of $2.05 in two months. What is the price of a put option with the same exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of a put option

Problem 15-11 Put-Call Parity (LO4, CFA1) A call option is currently selling for $4.40. It has a strike price of $55 and six months to maturity. The current stock price is $57 and the risk-free rate is 3.4 percent. The stock will pay a dividend of $2.05 in two months. What is the price of a put option with the same exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of a put option

Essentials Of Investments
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
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Problem 15-11 Put-Call Parity (LO4, CFA1) A call option is currently selling for $4.40. It has a strike price of $55 and six months to maturity. The current stock price is $57 and the risk-free rate is 3.4 percent. The stock will pay a dividend of $2.05 in two months. What is the price of a put option with the same exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of a put option
Transcribed Image Text:Problem 15-11 Put-Call Parity (LO4, CFA1) A call option is currently selling for $4.40. It has a strike price of $55 and six months to maturity. The current stock price is $57 and the risk-free rate is 3.4 percent. The stock will pay a dividend of $2.05 in two months. What is the price of a put option with the same exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price of a put option
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