A put option that expires in six months with an exercise price of $45 sells for...
A put option that expires in six months with an exercise price
of $45 sells for $4.80. The stock is currently priced at $41, and
the risk-free rate is 3.3 percent per year, compounded
continuously.
What is the price of a call option with the same exercise price?
(Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Homework Answers
Using put-call parity and solving for the call price we get:
$41 + $4.80 = $45e–(.033)(.5) + C
C = $1.54
Add Answer to:
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