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Alle Oberthemen / Finance & Investment / Derivatives / Derivatives
175
15.The price of a European call option on a non-dividend-paying stock with a strike price of $50 is $6. The stock price is $51, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. What is the price of a one-year European put option on the stock with a strike price of $50? 
A.$9.91
B.$7.00
C.$6.00
D.$2.09
Answer: D

Put-call parity is c+Ke-rT=p+S0. In this case K=50, S0=51, r=0.06, T=1, and c=6. It follows that
p=6+50e-0.06×1−51 = 2.09.

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Autor: CoboCards-User
Oberthema: Finance & Investment
Thema: Derivatives
Veröffentlicht: 27.10.2015

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