What is the value of a put option if the underlying stock price is $50, the strike price is $43, the underlying stock volatility is 55 percent, and the risk-free rate is 5.8 percent? Assume the option has 156 days to expiration. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

What is the value of a put option if the underlying stock price is $50, the strike price is $43, the underlying stock volatility is 55 percent, and the risk-free rate is 5.8 percent? Assume the option has 156 days to expiration. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 1P

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