Question: please answer all fill in the blanks correctly foram a good rating! Suppose a stock price can go up by 13.25% or down by 11.25%
please answer all fill in the blanks correctly foram a good rating!
Suppose a stock price can go up by 13.25% or down by 11.25% over the next year. You own a one-year put on the stock. The interest rate is 12%, and the current stock price is $53. a. What exercise price leaves you indifferent between holding the put or exercising it now? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. How does this break-even exercise price change if the interest rate is increased
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