Suppose the effective annual interest rate is 8%, Seay Companys stock currently trades for $63 per share,
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose the effective annual interest rate is 8%, Seay Company’s stock currently trades for $63 per share, and the 1-year forward price for Seay is $68.04. Suppose the premium for a 1-year call option on the stock is $11.8978, and the premium for a put with the same strike price is $9.0830. What is the strike price? (You may assume the stock pays no dividends over the next year.)
Related Book For
Advanced Accounting
ISBN: 978-0077431808
10th edition
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date: