Suppose a stock can be purchased for $8.18. A put option, with a strike price of $10.60 and maturity of 1 month, on the stock can be purchased for $4.36. The risk-free rate is 1.82% per month. What is the premium of a call that has a strike price of $10.60 and 1 month maturity?

Answer rating: 100% (QA)

To calculate the premium of a call option we can use the putcall parity formula wh... View the full answer