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

Assignment Help Finance Basics
Reference no: EM13285254

The current price of a stock is $33 and the annual risk free rate is 6%. A call option with a strike 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 strike price and expiration date as the call option?

Reference no: EM13285254

Questions Cloud

State and write the balanced complete ionic equations : Write the balanced complete ionic equations and net ionic equations for the reactions that occur when each of the following solutions are mixed. AgNO3(aq) and K2SO4(aq)
What is the smallest number of bits the adc needs to have : Design the circuit that interfaces a 2.5V 1mA LED to YourComputer. If a system uses a 12-bit ADC, about how many decimal digits will it have If a system requires decimal digits of precision, what is the smallest number of bits the ADC needs to have
Depict the structure of the one alkene : Draw the structure of the one alkene which upon treatment with O2 followed by Zn and acid, would give rise to formaldehyde and cyclohexanone
Find the complex power of the other load of source : Two loads connected in parallel are supplied from a single-phase 240-V rms source. The two loads draw a total real power of 400kw at a power factor 0f 0.8 lagging. One of the loads draws 120kW at a power factor of 0.96 leading. Find the complex po..
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 strike price and expiration date as the call option?
What is the nal of the lease : The machine has an estimated residual value of $250,000 at the end of the 4th year.
Development in egg of the fruit fly drosophila melanogaster : In the early stages of development in the egg of the fruit fly Drosophila melanogaster, it takes a cell about 5 minutes to replicate the entire genome, which is approximately 1.6 x 10^8 bp long. If DNA in these cells is synthesized at a rate of 30 bp..
Explain the reaction rate k at the temperature : Some wastewater has a BOD5 of 150 mg/L at 20 degrees Centigrade. The reaction rate k at that temperature has been determined to be 0.23/day.
Total replacement realizable : Determine the balance sheet inventory carrying value at December 31, 2013, assuming the LCM rule is applied to individual products.

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!

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