A put option that expires in six months with an exercise price of $65 sells for $4.89. The stock is currently priced at $61, and the risk-free rate is 3.6 percent per year, compounded continuously. What is the price of a call option with the same exercise price?
Answer to relevant QuestionsWhat are the prices of a call option and a put option with the following characteristics? Stock price = $57Exercise price = $60 Risk-free rate = 6% per year, compounded continuously Maturity = 3 months ...A stock is currently priced at $73. The stock will either increase or decrease by 15 percent over the next year. There is a call option on the stock with a strike price of $70 and one year until expiration. If the risk-free ...A company has a single zero coupon bond outstanding that matures in 10 years with a face value of $15 million. The current value of the company’s assets is $13.4 million, and the standard deviation of the return on the ...You purchase one call and sell one put with the same strike price and expiration date. What is the delta of your portfolio? Why? Insurance, whether purchased by a corporation or an individual, is in essence an option. What type of option is an insurance policy?
Post your question