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What would be the price of three-month european put option

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Reference no: EM132892445

Problem 1: Consider a non-dividend-paying stock with a current share price of 160p. Assuming the risk free interest rate is 5% per annum, theprice of a three-month European call option on the stock with a strike price of 160pis 10.53p. What would be the price of the three-month European put option on the stock with a strike price of 160p.

a. 8.55p
b. 11.45p
c. 13.25p
d. 14.53p

Reference no: EM132892445

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