A stock is currently selling for $73 per share. A call option with an exercise price of
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A stock is currently selling for $73 per share. A call option with an exercise price of $70 sells for $5.27 and expires in three months. If the riskfree rate of interest is 2.6 percent per year, compounded continuously, what is the price of a put option with the same exercise price?
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Solution Current price of a stock S0 73 Annual risk free rate r 26 or 0026 Put premium P Cal...View the full answer
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"I am a M.sc (organic chemistry) from NMU India and also a BSc graduate from The University of NMU, india.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781265553609
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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