Question:J-Rata Corp shares are currently trading at $30 each. It is
expected to increase by 10%...
Question
J-Rata Corp shares are currently trading at $30 each. It is
expected to increase by 10%...
J-Rata Corp shares are currently trading at $30 each. It is
expected to increase by 10% or decrease by 6% during the next
two-three months. If its strike price at maturity in six months is
set as $32 and the risk free rate is 8% per annum for all
maturities:
calculate its call options price and its put option price
currently.
Test and prove that the put-call parity is holding based on
your option pricing.