What is the price of a one-year european put option

Reference no: EM132052317

Question: The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the risk-free rate (all maturities) is 6% and the time to maturity is one year. What is the price of a one-year European put option on the stock with a strike price of $50?

Reference no: EM132052317

Questions Cloud

What is the volumetric flow rate of the original feed : What is the volumetric flow rate of the original feed (before the addition of N2) in m3/min?

Write a paper describing the forces of change and approaches : How can the perceptions of organizational stakeholders be managed? What techniques might we use?

What price of car can you afford : In addition to the loan, you can make a $790 down payment. If interest rates are 9.00 percent APR, what price of car can you afford

Calculate the vapor pressure of toluene and benzene : (a) Calculate the vapor pressure of toluene and benzene for the gas stream leaving the system.

What is the price of a one-year european put option : The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the risk-free rate.

How much inventory could it purchased : Speed Company has current assets of $196,500 and current liabilities of $25,555. How much inventory could it purchased on account and achieves

Describe an arbitrage opportunity in detail : The price of oil is currently $100 per barrel. The contract size is one barrel. The forward price for delivery in one year is $130.

Describe the main causes and outcomes of job satisfaction : Explain how job redesigns, alternative work arrangements, and other motivational initiatives would be manifested by application of theories.

What is the theoretical mass of acrylonitrile : What is the theoretical mass of acrylonitrile that can be produced from this mixture? The reactor is a closed vessel and its volume will not change.

User Account

All Pages