Suppose you own IBM, which is currently trading at 125. A put on IBM, struck at (K=)

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Suppose you own IBM, which is currently trading at 125.

A put on IBM, struck at (K=) 125 and expiring in 1 year, costs $12.50.

What does a call with a similar strike cost?

What is this called?

Related Book For answer-question

Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Apr 19, 2024 05:28 AM

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Suppose you own IBM, which is currently trading at 125. A put on IBM, struck at (K=)

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If a put option on IBM with a strike price of 125 and a oneyear expiration costs 1250 we ca... View the full answer

Fundamentals of Investing

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