Question: PLEASE HELP FAST I HAVE 20 min. The common stock of ABC INC is $130 per share. The price of a 3 month put option

PLEASE HELP FAST I HAVE 20 min. The common stock of ABC INC is $130 per share. The price of a 3 month put option with an exercise price of $130 is $11.10. IF the risk free interest rate is 9% per year what must be the price of a 3 month call option on ABC INCs stock at an exercise price of $130 if it is at the money? The stock pays no dividends.

A) Price of a 3 month call option: _____

Round answer to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Owen and Sonja Cornell are married. They are the parents of two children: Kirsten (born on July 1, 2000) and Ingrid (born on May 17, 2009). Ingrid does not have any income. Kirsten (SIN 805 232 329)...

Please answer the following three questions: 6. The common stock of ABC INC. has been trading in a narrow price range for the past month, and you are convinced it is going to stay in that range in...

Please provide excel spreadsheet detailing how you got to the multiple choice answer. I am trying to get ahead and understand each of the practiceproblems in prep for a exam so it would be very...

Question 13 8 pts The common stock of ABC Inc. has been trading in a narrow price for the past month, and you are convinced it is going to break far out of that range in the next 3 months but do not...

Hi, would you happen to have the solutions to the attached M/C questions? Please show your steps to the final answer if possible. Thank you. Quiz #6 Chapter 3 Employee vs. Self-Employed 1. Veronica...

I need to create an executive level report on the internal management of Belk. Inc. My assignment is that I am looking to acquire Belk, What information and analysis do I need to have in this report?...

Multiple choice, 34 questions, please highlight correct answer. Eric just won $13 million in the state lottery. He's been given the option of receiving a total of $6.6 million now, or he can elect to...

The common stock of ABC Inc. has been trading in a narrow price for the past month, and you are convinced it is going to break far out of that range in the next 3 month call option at an exercise...

Please help with b-2, b-3, and c . The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you believe it is going to stay in that range...

i need help with my assignment please help i only have 20 min left to submit it. Thanks! 1. (TCO 10) XTemp Inc. incurred $275,000 research costs on the development of its formula for a new line of...

Distinguish between facultative reinsurance and treaty reinsurance.

Tarzan (m = 85.0 kg) tries to cross a river by swinging from a vine. The vine is 10.0 m long, and his speed at the bottom of the swing (as he just clears the water) will be 8.00 m/s. Tarzan doesnt...

Pharoah Inc. has recently started the manuhacture of Trifiobo, a thr ee - wheeledrobot that can sican a home for fires and gas leaks and then tranumit this informacion to a smartphone. The cost...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".