Temex foods stock currently sells for 48 a call option on, Ask an Expert

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Temex Foods stock currently sells for $48. A call option on this stock is available, with a strike price of $45 and an expiration date six months in the future. The standard deviation of the stock's return is 45 percent, and the risk-free interest rate is 4 percent.

Calculate the value of the call option. Next, use the put-call parity to determine the value of a Temex put option that also has a $45 strike price and six months until expiration.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92070274

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