The current price of YBM stock S is $101. American options with a strike price K...
The current price of YBM stock S is $101. American options with a strike price K = $100 and maturing in T = 6 months trade on YBM. The continuously compounded, risk-free interest rate r is 5 percent per year. If the American put price pA is $2.70, then the American call price cA will at maximum be:
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Answer:
According to the Put-call parity;
C0 + X*e-r*t = P0 + S0
C0 + [$100 * e-[0.05 * (6/12)]] = $2.70 + $101
C0 + [$100 * 0.9753] = $103.70
C0 + $97.53 = $103.70
C0 = $103.70 - $97.53 = $6.17
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The current price of YBM stock S is $101. American options with
a strike price K...
The current price of YBM stock S is $101. European options with a strike price K...
The current price of YBM stock S is $101. European options with a strike price K = $100 and maturing in T = 6 months trade on YBM. The continuously compounded, risk-free interest rate r is 5 percent per year. A dividend of $1.10 is paid out after three months. If the put price p is $4.03, the call price c is:
The current price of YBM stock S is $101. European options with a strike price K...
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The current stock price is 100. The call option premium with a strike price 100 is...
The current stock price is 100. The call option premium with a strike price 100 is 8. The effective risk-free interest rate is 2%. The stock pays no dividend. What is the price of a put option with strike price 100? (Both options mature in 3 months.)
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