Same exercise price and expiration date as call option

Assignment Help Financial Management

Reference no: EM131043713

The current price of a stock is $33 and the annual risk-free rate is 6%. A call option with a strike price of $32 and with one year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

Reference no: EM131043713

Questions Cloud

Sagar age at present : Six years ago, the ratio of the ages of Kunal and Sagar was 6 : 5. Four years hence, the ratio of their ages will be 11 : 10. What is Sagar's age at present?

Determine if the decision toinvest is sensitive to project : The company willmake the investment only if it will result in a rateof return of 15% per year or higher. If the revenueis expected to be between $135,000 and $165,000per year for 5 years, determine if the decision toinvest is sensitive to the proj..

Second position from the right : A, B, C, D and E are sitting on a bench. A is sitting next to B, C is sitting next to D, D is not sitting with E who is on the left end of the bench. C is on the second position from the right. A is to the right of B and E. A and C are sitting tog..

What made their work unique or changed the direction of art : What made their work unique or changed the direction of art? What style of art did they produce?

Same exercise price and expiration date as call option : The current price of a stock is $33 and the annual risk-free rate is 6%. A call option with a strike price of $32 and with one year until expiration has a current value of $6.56. What is the value of a put option written on the stock with the same ex..

Many of each flower was ordered : A restaurant ordered 200 flowers for Mother's Day decorations. They ordered carnations at $1.25 each, roses at $5.50 each, and daisies at $2.50 each. They ordered mostly carnations but there were 20 fewer roses ordered than daisies. The total orde..

Each source of capital and weighted average cost of capital : Percent of capital structure: Debt 10% Preferred stock 5 Common equity 85 Additional information: Bond coupon rate 13% Bond yield to maturity 11% Dividend, expected common $ 7.00 Dividend, preferred $ 14.00 Price, common $ 70.00 Price, preferred $ 11..

How is the health condition distributed in the population : How is the health condition distributed in the population? Identify and describe how the health condition varies by population subgroups. What population groups are vulnerable, or at increased risk of this health condition

Determining the piece of work : A, B and C can do a piece of work in 10, 20 and 60 days respectively. In how many days can A do the work if he is assisted by B and C on every third day?

User Account

All Pages