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The Price of a European Call Option on Lululemon Stock

Question 53

Multiple Choice

The price of a European call option on Lululemon stock with an exercise price of $34.50 and one year to expiry is trading at $2.52.The current price of the stock is $34,and the risk-free rate is 4%.With no arbitrage,what must be the price of a European put on Lululemon with an exercise price of $34.50?


A) $3.37
B) $0.71
C) $1.69
D) $2.52
E) $0.50

Correct Answer:

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