A certain common stock is priced at 3650 per share the

Reference no: EM13484290 , Length: 5

A certain common stock is priced at $36:50 per share. The company just paid its $0.50 quarterly dividend. Assume that the interest rate is r = 6.0%. Consider a $35 strike European call, maturing in 6 months which currently sells for $3.20. What is the price of the corresponding 6-month, $35 strike put option?

(a) $1.20

(b) $1.69

(d) $2.38

(e) None of the above.

Reference no: EM13484290

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