A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call price
A put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A put option that expires in six months with an exercise price of $65 sells for $4.45. The
stock is currently priced at $61, and the risk-free rate is 3.9 percent per year,
compounded continuously. What is the price of a call option with the same exercise
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Call price
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Transcribed Image Text:A put option that expires in six months with an exercise price of $65 sells for $4.45. The
stock is currently priced at $61, and the risk-free rate is 3.9 percent per year,
compounded continuously. What is the price of a call option with the same exercise
price? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
X Answer is complete but not entirely correct.
Call price
$ 1.68 X
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