Chapter 25, Problem 26QP

Black–Scholes Put Pricing Model [LO2] Use the Black–Scholes model for pricing a call, put–call parity, and the previous question to show that the Black–Scholes model for directly pricing a put can be written as:

  $P=E\times e^{-Rt}\times \text{N}(-d_2)-S\times \text{N}(-d_1)$