Question: Work mode: Return to question A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $2.

 Work mode: Return to question A call option on Jupiter Motors

Work mode: Return to question A call option on Jupiter Motors stock with an exercise price of $80 and one-year expiration is selling at $2. A put option on Jupiter stock with an exercise price of $80 and one-year expiration is selling at $.5. If the risk-free rate is 8% and Jupiter pays no dividends, what should the stock price be? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Stock price $ 81.07

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!