Calculate the price of a european put option

Reference no: EM133332120

Question: Consider the European call option on a non-paying dividend stock with a strike of $139.33 and 1-year maturity. The current price of the stock is $114.16. The market price of the call is $10.01 and the 1-year interest rate is 5%.

Calculate the price of a European put option on the non-paying dividend stock with a strike of $139.33 and 1-year maturity.

Reference no: EM133332120

Questions Cloud

What is your effective annual interest rate for this credit : how much should you remit? C. If you don't take the discount, how much interest (in dollars) are you paying for this trade implicitly?

What will be the effect on this company eps and pe ratio : Evaluate the two alternatives in terms of the effect on the price per share of the stock and shareholder wealth. What will be the effect on this company's E

Capstone project mental health : Summarize your specialization, your capstone project mental health, and your planned methodology.

Calculate the yield to maturity and realized compound yield : Consider an 8% coupon bond selling for $953.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be

Calculate the price of a european put option : Calculate the price of a European put option on the non-paying dividend stock with a strike of $139.33 and 1-year maturity.

Audience is important for continuous improvement : When delivering a professional development, feedback from your audience is important for continuous improvement.

What was the net return on the option position : If the investor purchased 25 European puts, what was the net return on the option position if the stock price was $56.51 at the option's maturity?

Why there is worldwide rise of non-local sports fans : Why there is a worldwide rise of non-local sports fans? And why non-local sports fans are important to sports franchises?

Repair strategies applied in sports crises : What are the common image repair strategies applied in sports crises? Please identify five frequently-applied strategies

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages