Suppose that a stock, APA, is currently trading at $99.50, and will pay a $1.01 dividend in two months. Two- and three-month zero- coupon bonds are trading at 0.99 and 0.98, respectively. Three-month European calls on APA struck at 100 are trading at $10.30. The price of the three-month European put on APA is closest to: а. $11.20 b. $9.80 С. $10.30 d. $10.80

Suppose that a stock, APA, is currently trading at $99.50, and will pay a $1.01 dividend in two months. Two- and three-month zero- coupon bonds are trading at 0.99 and 0.98, respectively. Three-month European calls on APA struck at 100 are trading at $10.30. The price of the three-month European put on APA is closest to: а. $11.20 b. $9.80 С. $10.30 d. $10.80

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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