Multiple Choice
Consider the following data for a European option: Expiration = 6 months; Stock price = $80; Exercise price = $75; Call option price = $12; Risk-free rate = 5% per year.Using put-call parity,calculate the price of a put option having the same exercise price and expiration date.
A) $3.07
B) $5.19
C) $11.43
D) $3.42Value of put = value of call - share price + PV of exercise price
Correct Answer:
Verified
Correct Answer:
Verified
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