A 7-month forward price on a stock is $100. The price of a 3-months European call option with strike price of $98 on thi

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answerhappygod
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A 7-month forward price on a stock is $100. The price of a 3-months European call option with strike price of $98 on thi

Post by answerhappygod »

A 7-month forward price on a stock is $100. The price of a
3-months European call option with strike price of $98 on this
forward contract is $5. Using Black’s model, find the price of a
4months European put option with strike price of $101 on the same
forward contract if the riskfree interest rate is 8%. You may want
to use Excel for this question.
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