Required: A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $6.
Posted: Tue Nov 16, 2021 7:51 am
Required: A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $6. A put option on Jupiter stock with an exercise price of $75 and one-year expiration is selling at $4.0. If the risk- free rate is 10% and Jupiter pays no dividends, what should the stock price be? Assume there is no dividends. (Do not round intermediate calculations. Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Stock price $ 69.73 x