What is the value of a put option written on the stock

Assignment Help Business Management

Reference no: EM131375995

The current price of a stock is $33, and the annual risk-free rate is 6 percent. A call option with an exercise price of $32 and 1 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: EM131375995

Questions Cloud

Compare and contrast the strategies : UPS and FED-EX are examples of third party logistics providers (3 PL). Compare and contrast the strategies, business models, IT infrastructure and services and product offerings of UPS and FED-EX?

Describe what happens during the defrost cycle : What are the two main types of defrost controls used on heat pumps today?

Provide imprinted promotional products for companies : Premier is a catalog company that provides imprinted promotional products for companies. Your travel service was looking for something special to offer in promoting its cruise ship travel packages.

Consistently sought to overthrow management : Frederick Taylor consistently sought to overthrow management "by rule of thumb" and replace it with actual timed observations leading to "the one best" practice. Can you give an example of how nurses have implemented change to improve patient outc..

What is the value of a put option written on the stock : What is the value of a put option written on the stock with the same exercise price and expiration date as the call option?

Ensure efficient operations and optimum performance : Please review two articles from the Kaplan Library on Operations and briefly explain some key areas in your organization needed to ensure efficient operations and optimum performance. Please include in-text citations and references in APA 6th edition..

Leadership of managers : Leaders with loyal followers set high standards and strive to attain exceptional results. Some of the methods that can be used are that by empowering employees, the leader can accomplish things that he or she could not accomplish if acting alone...

Discusses special protections established for juvenile case : While the overall process flow within the criminal justice system is very similar for both adult and juvenile offenders, some special protections have been added for juvenile to ensure their rights are protected. These special protections are also..

Determine the earnings statement for this company : For the initial computations you are asked to present an excel sheet up to 10 years. After 10 years you will have to make an assumption about permanent growth and discount with Cordon-Shapiro. Determine the Earnings Statement for this company. What..

User Account

All Pages