Compute price of put with same strike and expiration date

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Reference no: EM131522245

Rebecca is interested in purchasing a European call on a hot new? stock, Up, Inc. The call has a strike price of $ 95.00 and expires in 91 days. The current price of Up stock is $117.04?, and the stock has a standard deviation of 37% per year. The? risk-free interest rate is 38% per year. Up stock pays no dividends. Use a? 365-day year.

a. Using the? Black-Scholes formula, compute the price of the call.

b. Use? put-call parity to compute the price of the put with the same strike and expiration date.

?(Note?: Make sure to round all intermediate calculations to at least five decimal places.?)

Reference no: EM131522245

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