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

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Reference no: EM132921291

Problem 1: 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 continuously compounded 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?

Group of answer choices

Option 1: $9.91

Option 2: $7.00

Option 3: $6.00

Option 4: $2.09

Reference no: EM132921291

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