Stark Enterprises Stock currently sells for $73. A one-year call option with strike price of $87...

Question

Question

Answer 1

Answer #1

Correct answer: $19.29

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

А B с D E 1 2 3 4 5 6 7 Stock Price Exercise Price Call Price Maturity Risk free rate $73.00 $87.00 $7.00 1 2% oc If Put-Call

Cell reference -

J. А B с D 1 2 3 4 Stock Price Exercise Price Call Price Maturity Risk free rate 73 87 7 3 4 5 6 7 1 0.02 oc If Put-Call pari

Hope it will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Answer 2

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