Two call options with strike prices of 55 and 60 trade for $6 and $2. Stock price

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Two call options with strike prices of 55 and 60 trade for $6 and $2. Stock price is currently $59. risk free rate is zero. the stock pays $1 individends before option expiration. compute the price of a put with a strike 60.

Related Book For answer-question

Fundamentals of Futures and Options Markets

ISBN: 978-0132993340

8th edition

Authors: John C. Hull

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Posted Date: Apr 26, 2023 02:55 AM

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Two call options with strike prices of 55 and 60 trade for $6 and $2. Stock price

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Expert Answer:

To calculate the price of a put option with a strike price of 60 we can use the putcall parity f... View the full answer

Fundamentals of Futures and Options Markets

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