Osceola stock is selling for $53 a share. A 6-month call on Osceola stock with a strike price of $55 is priced at $3.47. Risk-free assets are currently returning 2.69% compounded continuously.

What is the price of a 6-month put on Osceola stock with a strike price of $55? 

 

2. If you start the project today, you will incur an initial cost of $8,267 and will receive cash inflows of $5,575 a year for two years. If you wait one year to start the project, the initial cost will rise to $9,378 and the cash flows will increase to $5,771 a year for two years.

What is the value of the option to wait if the discount rate is 13%?

Answer rating: 100% (QA)

1 To find the price of a 6month put option on Osceola stock with a strike price of 55 we can use the ... View the full answer