Question

The current price of a stock is $50 and the annual risk-free rate is 6 percent. A call option with an exercise price of $55 and one year until expiration has a current value of $7.20. What is the value of a put option (to the nearest dollar) written on the stock with the same exercise price and expiration date as the call option? (Use put-call parity)

Answer #1

The current price of a stock is $54.5 and the annual risk-free
rate is 2.8 percent. A put option with an exercise price of $55 and
one year until expiration has a current value of $ 3.47 . What is
the value of a call option written on the stock with the same
exercise price and expiration date as the put option? Show your
answer to the nearest .01. Do not use $ or , in your answer.
Because of...

The current price of a stock is $ 57.85 and the annual effective
risk-free rate is 8.7 percent. A call option with an exercise price
of $55 and one year until expiration has a current value of $ 6.64
. What is the value of a put option written on the stock with the
same exercise price and expiration date as the call option? Show
your answer to the nearest .01. Do not use $ or , in your answer....

The current price of a stock is $ 58.72 and the annual effective
risk-free rate is 7.8 percent. A call option with an exercise price
of $55 and one year until expiration has a current value of $ 8.91
. What is the value of a put option written on the stock with the
same exercise price and expiration date as the call option? Show
your answer to the nearest .01. Do not use $ or , in your answer....

You are considering purchasing a call option on a stock with a
current price of $31.59. The exercise price is $33.1, and the price
of the corresponding put option is $3.81. According to the put-call
parity theorem, if the risk-free rate of interest is 1.6% and there
are 45 days until expiration, what is the value of the call? (Hint:
Use 365 days in a year.)

You are considering purchasing a put option on a stock with a
current price of $54. The exercise price is $56, and the price of
the corresponding call option is $4.05. According to the put-call
parity theorem, if the risk-free rate of interest is 5% and there
are 90 days until expiration, the value of the put should be

You are attempting to value a call option with an exercise price
of $55 and one year to expiration. The underlying stock pays no
dividends, its current price is $55, and you believe it has a 50%
chance of increasing to $85 and a 50% chance of decreasing to $25.
The risk-free rate of interest is 6%. Based upon your assumptions,
calculate your estimate of the the call option's value using the
two-state stock price model. (Do not round intermediate...

The current stock price is $129 and put price is $6. The
risk-free interest rate is 10% per annum continuously compounded.
Using the put-call parity, calculate the call price. The strike is
$105 and the maturity is 0.5 year for both put and call.

4. Use the following inputs: (1) current stock price is $50, (2)
exercise price is $45, (3) time to expiration is 3 months, (4)
annualized risk-free rate is 6%, and (5) variance of stock return
is 0.20.
a. find the call value
b. find the put value

GIVEN:
Spot price = $50
Strike Price = $54
Time to expiration = 6 months
Risk Free rate = 3%
Variance = 22% (use for volatility)
FIND:
Price of a European Put option
Price of a European Call option
Show work and formula

Consider a two-period, two-state world. Let the current stock
price be 45 and the risk-free rate be 5 percent. Each period the
stock price can go either up by 10 percent or down by 10 percent. A
call option expiring at the end of the second period has an
exercise price of 40.
1. Find the stock price sequence.
2. Determine the possible prices of the call at
expiration.
3. Find the possible prices of the call at the end...

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