Question: 4. A certain Call option and Put option for Walker Industries stock both have an exercise (strike) price of $35.00. The Call premium (price) is
4. A certain Call option and Put option for Walker Industries stock both have an exercise (strike) price of $35.00. The Call premium (price) is $3.21 and the Put premium (price) is $5.32. Assume the stock pays NO dividends, the risk-free rate is 4%, and both options expire in 41 days. (1.) Using the put/call parity modelcalculate the current stock price (S). (2.) (2.) Refer to the information in Problem 4. Based upon your answer for the stock price, which option is "in-the- money? (3.) Briefly explain your answer. [1 pt.)
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