Determine the price of a put option

Reference no: EM131458182

Question: a. Using the Black-Scholes-Merton formula, determine the price of a put option.

b. Verify whether the options prices obtained in this and the previous question satisfy put-call parity.

Special Motors Corporation's stock price S is $59, the strike price K is $60, the maturity T is forty-four days, the implied volatility S is 30 percent per year, and the risk-free interest rate r is 3.3 percent per year.

Reference no: EM131458182

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