# Question

Calculate the put price (P), according to put-call parity, given the information in Practice Problem 29.

Given the following information: stock price (S) = $36, strike price (X) = $32, risk-free rate (r) = 5%, t = 2 years, σ = 20%.

Given the following information: stock price (S) = $36, strike price (X) = $32, risk-free rate (r) = 5%, t = 2 years, σ = 20%.

## Answer to relevant Questions

What is the price of a put option with a strike price of $50 and six months to maturity when the stock price is currently trading at $45? Assume the stock-price variance is 0.5 and the risk-free rate is 5 percent.In most markets, you are not permitted to short sell if the stock price has fallen. That is, you can only short sell on an “uptick.” Using put-call parity, show that you can replicate the cash flows of a short sale.The current price of a stock is $97. You expect the price of the stock to be in the range of $95 to $105 in the next period. The call option with an exercise price of $105 is $1.30; the put option with an exercise price of ...a. If the firm is not capital constrained and the projects in Table 1 are mutually exclusive, which project should the firm undertake using the following criteria?i. NPVii. IRRiii. Payback periodiv. Discounted payback ...Daria is evaluating two investments—investment 1 will produce cash flows for the next 5 years and has an NPV of $1,000. Investment 2 will produce cash flows for the next 15 years and has an NPV of $700. Based on this ...Post your question

0