Problemin october 2011 a 15-month call on the stock of, Ask an Expert

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Problem:

In October 2011, a 15-month call on the stock of Amazon.com, with an exercise price of $380, sold for $46.60. The stock price was $380. The risk-free interest rate was 6%. How much would you be willing to pay for a put on Amazon stock with the same maturity and exercise price? Assume that the Amazon options are European options. (Note: Amazon does not pay a dividend.)

Note: Please explain comprehensively and give step by step solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167010

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