Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients want

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients want

Post by answerhappygod »

Question 2 Put Call Parity You Have An Option Dealer Who Deals In Non Publicly Traded Options One Of Your Clients Want 1
Question 2 Put Call Parity You Have An Option Dealer Who Deals In Non Publicly Traded Options One Of Your Clients Want 1 (28 KiB) Viewed 30 times
Question 2: Put-call parity You have an option dealer who deals in non-publicly traded options. One of your clients wants to purchase a one year call option on a HAL computer systems share with a strike price of $20. Another dealer is willing to write a one year put option on a HAL computer systems share with a strike price of $20 and sell you the put option for a price of $3.50. If HAL's current share price is $18, and the risk-free rate is 6% per annum, what is the price you can charge for the call option, using put-call parity?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”