PlumCZ corporation stock is currently priced at $44 per share. PlumCZ pays no dividends. A European call option contract (to buy 100 shares of PlumCZ) currently cost $360. The contract has an exercise price of $45 per share and expires in six months. The six-month simple risk-free interest rate is 3%. A European put option on PlumCZ shares also has an exercise price of $45 per share and also expires in six months.

What is the price of this put option contract? 

 

PearET corporation stock is currently priced at $66 per share. PearET pays no dividends. A put option contract for 100 shares has an exercise price of $66 per share and expires in six months. 

A call option contract for 100 shares also has an exercise price of $66 per share and expires in six months. Which is more expensive: the put contract or the call contract? 

Answer rating: 100% (QA)

For PlumCZ Corporation We can calculate the theoretical price of the call option using the BlackScho... View the full answer