Calculate the price of the call and put options

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Find a call option and put option for a publicly traded company that have the same expiration date and exercise price.

(a) Calculate the price of the call and put options using the Black-Sholes pricing     model. Assume r = 1% and σ = .20

(b) Compare the results of (a) to the midpoint of the bid-ask spread of the actual option prices. What is the most likely answer why the results differ?

(c) Using actual prices, does put-call parity hold for these options? Show your calculation.

Reference no: EM13809805

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