A 120 day put option with strike price $80 is selling for $5.33. The risk-free rate is

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A 120 day put option with strike price $80 is selling for $5.33. The risk-free rate is 3 % and the current stock price is $82. Presently the VIX shows volatility at 22.6 %. Is the option over priced? under priced? or just about right?

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Finance With Monte Carlo

ISBN: 9781461485100

2013th Edition

Authors: Ronald W. Shonkwiler

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Question Posted: Oct 03, 2023 06:25 AM

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A 120 day put option with strike price $80 is selling for $5.33. The risk-free rate is

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ANSWER To determine whether the option is overpriced underpriced or just about right we ...View the full answer

Finance With Monte Carlo

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