Question
The price of a European put option on a stock with a strike price of $30.00...
The price of a European put option on a stock with a strike price of $30.00 is $6.80. The stock price is $28.00, the continuously compounded risk-free rate (all maturities) is 4% and the time to maturity is one year. A dividend of $2.00 is expected in three months. What is the price of a one-year European call option on the stock with a strike price of $30.00?
Select one:
a. $7.22
b. $4.00
c. $6.98
d. $4.74
Homework Answers
Answer #1
SEE THE IMAGE. ANY DOUBTS,
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