What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Stock price = $88 Exercise price = $85 3.20% per year, compounded Risk-free rate = continuously Maturity 5 months Standard = 61% per year deviation × Answer is not complete. Call price Put price $ 56.84 X
What are the prices of a call option and a put option with the following characteristics? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Stock price = $88 Exercise price = $85 3.20% per year, compounded Risk-free rate = continuously Maturity 5 months Standard = 61% per year deviation × Answer is not complete. Call price Put price $ 56.84 X
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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Transcribed Image Text:What are the prices of a call option and a put option with the following characteristics?
(Do not round intermediate calculations and round your answers to 2 decimal places,
e.g., 32.16.)
Stock price
$88
Exercise price = $85
3.20% per year, compounded
Risk-free rate =
continuously
Maturity 5 months
Standard
= 61% per year
deviation
Answer is not complete.
Call price
$
56.84 x
Put price
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