The price of a European call that expires in six months and has a strike price of $50 is $4. The underlying stock price is $52, and pays no dividends. The term structure is flat, with all risk-free interest rates being 2%. What must be the price of a European put option that expires in three months and has a strike price of $50?

Answer rating: 100% (QA)

To find the price of a European put option we can use putcall parity which states C ... View the full answer