Homework Answers
Acc to Put Call Partity Theory,
Vc = Value of Put + Stock Price Today - PV os Strike Price
PV of STrike Price = Strike Price * e^*rt
= $ 32 * e^(-0.03*1)
= $ 32 * e^-0.03
= $ 32 * 0.9704
= $ 31.05
Vc = Value of Put + Stock Price Today - PV os Strike Price
= 3.69 + 29 - 31.05
= $ 1.64
Value of Call option is $ 1.64
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