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Calculate call options price and put option price currently

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Reference no: EM132673153

1. 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:

(a) Calculate its call options price and its put option price currently.

(b) Test and prove that the put-call parity is holding based on your option pricing.

Reference no: EM132673153

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