Put-Call Parity The current price of a stock is $35, and the annual risk-free rate is 3%.
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Put-Call Parity The current price of a stock is $35, and the annual risk-free rate is 3%. A call option with a strike price of $31 and with 1 year until expiration has a current value of $6.60. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.
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Related Book For
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
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