The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6% LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6% LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
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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The spot price of stock LD is 400$. The price of a call on LD that has a strike price of 371$ and expires in 8 months is 39.8$. Risk free Rate= 6%
LD will pay a 10.82$ dividend in 2 months. What should the price of a put on LD that has the same strike price and maturity as the call be?
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