In January 2009, a one-year call on the stock of Amazon.com, with an exercise price of $45.00,

Question:

In January 2009, a one-year call on the stock of Amazon.com, with an exercise price of $45.00, sold for $19.55. The stock price was $55. The risk-free interest rate was 2.5%. How much would you be willing to pay for a put on Amazon stock with the same maturity and exercise price? Assume that the Amazon options are European options.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...