Question

Exercise price $150 Spot Price $110 Risk rate is 5% Using Put-Call Parity & continuous compounding...

Exercise price $150

Spot Price $110

Risk rate is 5%

Using Put-Call Parity & continuous compounding

A. If the premium for the Call is $12.00,what is the Premium for the Put, given both options expire in 1.5 years?

B If the Premium for the Put is $3.00 and both options expire in 3.5 years, then how much is the Premium for the Call option?

Using excel!

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