4. Compute the three-month (T = 1/4) forward price F of a stock currently trading at when the risk-free rate for this period is r = 4%. Then, set the strike price K = F calculate call and put values from the Black-Scholes model if the volatility is assuming the stock pays no dividends. What can you say about the call and put prices you just computed?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.