Use the Black-Scholes model to price a call with the following characteristics: Stock price =$28 Strike price

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Use the Black-Scholes model to price a call with the following characteristics:

Stock price =$28

Strike price =$40

Time to expiration =6 months

Stock price variance =0.65

Risk-free interest rate =0.06

What does put-call parity imply the price of the corresponding put will be?

Related Book For answer-question

Principles of Corporate Finance

ISBN: 978-0077404895

10th Edition

Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen

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Posted Date: Jun 17, 2019 12:28 AM

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Use the Black-Scholes model to price a call with the following characteristics: Stock price =$28 Strike price

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Principles of Corporate Finance

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