Use the Black-Scholes model to price a call with the following characteristics: Stock price =$28 Strike price
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Question:
Use the Black-Scholes model to price a call with the following characteristics:
Stock price =$28
Strike price =$40
Time to expiration =6 months
Stock price variance =0.65
Risk-free interest rate =0.06
What does put-call parity imply the price of the corresponding put will be?
Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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