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Calculate the value of a european put option to sell

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Reference no: EM132833150

The spot price of the stock is $25. The volatility of the stock is 25% p.a. The continuous compounded risk-free rate is 10% p.a. The stock will pay yield at 2% p.a.

i. Calculate the value of a European put option to sell this stock at $23 in 6 months.

ii. Calculate the value of a European call option to buy this stock at $23 in 6 months using the put-call parity.

Reference no: EM132833150

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