Consider A Stock With A Price With S 100 And Pays No Dividends The Annual Risk Free Rate Is 10 A European Put Opt 1 (64.15 KiB) Viewed 59 times
= Consider a stock with a price with S = 100 and pays no dividends. The annual risk-free rate is 10%. A European put option on the stock with a strike price 80 and an expiration date three months from now has a price of 15. What is the price of a European call option on this stock with the same strike price and expiration date? a
Consider a stock expected to pay a dividend $8 per share in three months from now. The current stock price is $100, and the annualized risk-free rate is 8% . An investor tries to take a long position in a one-year forward contract on the stock. What is the forward price? a
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!