European call option and put option on IBM stock have the same strike price and same...
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European call option and put option on IBM stock have the same strike price and same time to maturity. Now, the price of the call is $3.35 and the price of the put is $0.85. One minitues later, news reaches the market increases volatilities (no effect on the stock price or interest rates). As a result the price of the call changes to $3.50. What's the price of put should be? Please provide reason in detail. European call option and put option on IBM stock have the same strike price and same time to maturity. Now, the price of the call is $3.35 and the price of the put is $0.85. One minitues later, news reaches the market increases volatilities (no effect on the stock price or interest rates). As a result the price of the call changes to $3.50. What's the price of put should be? Please provide reason in detail.
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Price of call option335 Price of put option085 Now strike prices of call and put option are same Now ... View the full answer
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