In december 2014 a 10-month call on a stock with an, Ask an Expert

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In December 2014, a 10-month call on a stock, with an exercise price of $315, sold for $5.20. The stock price was $315. The risk-free interest rate was 4%. Assume that the stock options are European options. (Note: This stock does not pay a dividend.)

How much would you be willing to pay for a put on this stock with the same maturity and exercise price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92341132

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