What would be the time value of put option

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Reference no: EM132053163

1. Tresnan Brothers is expected to pay a $1.4 per share dividend at the end of the year (i.e., D1 = $1.4). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 13%. What is the stock's current value per share? Round your answer to two decimal places. $

2. If the current stock price is $73.20, what would be the time value of a put option with an exercise price of 70 and a current put premium (i.e., the put price) of 1.50? 0 $1.50 $3.20 $4.70 $7.30 $8.45.

Reference no: EM132053163

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