What is the value of a put option written on the stock

Assignment Help Finance Basics
Reference no: EM131100878

The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

Reference no: EM131100878

Questions Cloud

Reflective essay on the process of preparing : Student will review prepare a 2-page Reflective Essay on the process of preparing an electronic portfolio in this class. Specifically, students should comment on what they have learned in the process of preparing the assignments to be included in ..
Write out the truth table for the function : E15: Fundamentals of Digital Systems - Fall 2010 - HOMEWORK 2. Write out the truth table for the function, and remember to indicate which function outputs we don't care about
Stakeholders for an international : 1. Would it be easier just to follow the business practices and customs of the country in which you are doing business. Why or why not?
Determine the required values of is and r1 : Calculate the small-signal voltage gain at the two ends of the range.
What is the value of a put option written on the stock : The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the sam..
Ytm to maturity to the bondholders : Assume that the bonds remain outstanding until maturity and thatthe company makes all promised interest and principal payments in atimeley basis. What is the YTM to maturity to the bondholders inDecember of 2005?
Globalization and regionalization : What the difference between the globalization and regionalization?
Find the price of a call option on the stock : The current price of a stock is $15. In 6 months, the price will be either $18 or $13. The annual risk-free rate is 6 percent. Find the price of a call option on the stock that has an exercise price of $14 and that expires in 6 months.
Discuss the accuracy of these results : Explain what these areas mean. Discuss the accuracy of these results and how they relate to your desired career path. you will need to correctly cite MY PLAN in each paragraph.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the cost of that stock

Find the WACC for HHH Inc - determine which of two mutually exclusive opportunities to choose for your company's next investment project - what is the cost of that stock?

  What is the price-earnings ratio

ABC, Inc., has a market-to-book ratio of 3, net income of $84,950, a book value per share of $13.1, and 51,677 shares of stock outstanding. What is the price-earnings ratio?

  As is often the case the marketing department has

1.your supervisor vic gonzales has asked you to prepare a capital budgeting report indicating whether isgc should

  Discuss the pros & cons of various sources

Discuss the pros & cons of various sources of estimates of future earnings and dividend growth rates for a company.

  Mortgage refinance

Suppose you have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,653 and you have made each pay on time.

  A corporate bond offers you 68 percent while a tax-exempt

you are in the 28 percent federal income tax bracket. a corporate bond offers you 6.8 percent while a tax-exempt bond

  Who would benefit in terms of increased fees

You wonder whether this would be a win-win investment for your retired client, who is seeking higher current income, and for you, who would benefit in terms of increased fees. What would you do?

  Eliminate or reduce as much as possible the potential estate

The goal of this Estate Planning Case Study is to make adjustments to an existing estate plan to eliminate the potential estate tax liability. Today is January 2014, John has been your financial planning client for over ten - years. He is 61 and marr..

  Use constant growth model to calculate price of the stock

IP Corporation is expected to pay $1.70 dividends next year. The dividend growth rate is expected to be 7 percent forever. If the required rate of return for IP is 10 percent.

  Impact of 9/11 on the american economy

Assess The Impact of September 11, 2001 on 4-section of American Economy. Examine the effects upon selected four segments of the American economy as a result of these attacks

  Explain the following basic options strategiesbuy stock

explain the following basic options strategiesbuy stock versus sell stock shortbuy a call versus writing a callbuy a

  Effective communication norms in a business setting

Explain effective communication norms in a business setting. Describe the role of interpersonal communication both as a manager and as an employee. What specific techniques have you used to overcome barriers to communication? Be sure to specify you..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd