User Account

All Pages

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

Assignment Help Finance Basics
Reference no: EM132481510

The current price of a stock is $35, and the annual risk-free rate is 3%. A call option with a strike price of $31 and with 1 year until expiration has a current value of $5.50. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option? Do not round intermediate calculations. Round your answer to the nearest cent.

Reference no: EM132481510

Questions Cloud

Calculate separately the present value : Identify ONE BY ONE and calculate separately the present value of each periodical cash flow (annual incomes and expenses) during the project.
Create a class file to protect your data : Build an C# application - Add properties to a class that represents a Student Class - Create a Class file to protect your data using Data Protection APIs
What is the price per share of the company stock : Pearl Corp. is expected to have an EBIT of $3,100,000 next year. Depreciation, the increase in net working capital, and capital spending are expected
What is the amount of the cash flow from assets : Ford Corp. issued $15 mil. in net new equity and $45.5 mil new long-term debt. During the year, ABC Corp. purchased $42 mil in net new fixed assets
What is the value of a put option written on the stock : What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?
Describe the principle used to calculate the put price : Luther industries is currently trading for $26.5 per share. The stock pays no dividends. A one year European call option on Luther with a strike price of $29.5
MCR001 Economic Environment Assignment : MCR001 Economic Environment Assignment help and solution, Universal Business School - assessment writing service - Impacts of coronavirus
Providence redevelopment agency : The Providence Redevelopment Agency currently has an A rates municipal bond outstanding, with a coupon rate of 5.00%, paid semi-annually, due to mature in eight
Financial condition of a healthcare business : What stakeholders are most interested in the financial condition of a healthcare business?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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