Put-call paritythe common stock of triangular file company, Ask an Expert

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Put-call parity

The common stock of Triangular File Company is selling at $107. A 39-week call option written on Triangular File’s stock is selling for $25. The call’s exercise price is $117. The risk-free interest rate is 5% per year. a. Suppose that puts on Triangular stock are not traded, but you want to buy one. What should a 39-week put with an exercise price of $117 sell for? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
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