HighFlyer Stock currently sells for $48. A one-year call option with strike price of $55 sells...
HighFlyer Stock currently sells for $48. A one-year call option with strike price of $55 sells for $9, and the risk-free interest rate is 6%. What is the price of a one-year put with strike price of $55?
Please answer in excel and show formula
Homework Answers
| Price of a one year put with strike price of $55 |
| = Call option selling price - current selling price + (one year strike price/(1+interest rate)) |
| = 9 - 48+(55/1.06) |
| = $12.89 |
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