A stock is currently selling for 2650 a 2-month put option, Ask an Expert

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A stock is currently selling for $26.50. A 2-month put option with a strike price of $30 has an option premium of $4.15. The risk-free rate is 2.5 percent and the market rate is 9.75 percent.

Required:

Question: What is the option premium on a 2-month call with a $30 strike price? Assume the options are European style.

$0.77
$0.67
$0.41
$0.33
$0.00

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148502

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