The current price of a stock is 1200. The price of a six-month 1100-strike put is...
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The current price of a stock is 1200. The price of a six-month 1100-strike put is 90.36. The annual interest rate is 5% compounded continuously. Bob buys this put, and Rick enters into a long forward contract. In six months, Bob and Rick have the same profit. Calculate the price of the stock in six months. The current price of a stock is 1200. The price of a six-month 1100-strike put is 90.36. The annual interest rate is 5% compounded continuously. Bob buys this put, and Rick enters into a long forward contract. In six months, Bob and Rick have the same profit. Calculate the price of the stock in six months.
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