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

Assignment Help Finance Basics
Reference no: EM13275243

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 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 strike price and expiration date as the call option?

Reference no: EM13275243

Questions Cloud

Explain a peptide with the amino acid sequence : A peptide with the amino acid sequence C-P=T-Y-R-L-D-Q (MW = 995.12 g/mol) is dissolved in this solution at a concentration of 5 micromol.
Estimate how much heat is absorbed : A 110 grams sample of water at 30 degrees Celcius is heat to steam at 130 degrees Celcius. how much heat is absorbed
Calculate the final ph of naoh : Calculate the final pH when 2.6 mmole NaOH is added to 1 mmole phosphoric acid, given pKa1 = 2.1, pKa2 = 7.2 and pKa3 = 12.4
Find his average power output during the race : Every year, there is a foot race to the top of the Empire State Building. what was his average power output during the race
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 strike price and expiration date as the call option?
Estimate the diameter of the wire : A 18.2-? resistor is made from a coil of copper wire whose total mass is 18.5g. What is the diameter of the wire
Explain what is the net charge of the peptide in solution : A formate buffer (pka = 3.75) is prepared by mixing 50 mL of a 4 M formic acid and 2 g of solid sodium hydroxide (MW= 40g/mol) in total volume of 1.0 L. A peptide with the amino acid sequence C-P=T-Y-R-L-D-Q (MW = 995.12 g/mol) is dissolved in thi..
What was its interest expense : Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense?
Determine maximum time interval between successive samples : A 6-bit A/D converter with a full-scale voltage of 20 V is to be employed in a binary PCM system. The input analog signal is adjusted to cover the range from zero to slightly under 20V, and the converter is connected for unipolar encoding.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much value to the unlevered firm per dollar of debt

Given the following information, leverage will add how much value to the unlevered firm per dollar of debt? Corporate tax rate: 30% Personal tax rate on income from bonds: 20% Personal tax rate on income from stocks: 0%

  Construct a spreadsheet to calculate the payback period

Seth Bullock, the owner of Bullock Gold Mining, is estimating a new gold mine in South Dakota. Dan Dority, the firm's geologist, has just finished his analysis of the mine site.

  How much must you pay each month

You estimate that you will owe $42,800 in student loans by the time you graduate. The interest rate is 4.25 percent. If you want to have this debt paid in full within six years, how much must you pay each month?

  Maturity and the current market value

Calculate the present value of $1,000 zero-coupon bond with 5 years to maturity if the required annual interest rate is 6% and what relationship do you observe between yield to maturity and the current market value?

  Information about costs and investments

This is a fictional task in sense that there is no concrete plan from Iacom as explained in the task text. It applies information about costs and investments.

  Determine the speculative premium on the warrant

Suppose you can buy a warrant for $5 that gives you the option to buy one share of common stock at $14 each share. The stock is currently selling at 16 a share.

  Discuss the free cash flow model

Discuss the free cash flow model, the adjusted present value model, and the residual income model.

  What is the equivalent annual annuity for each plane

By how much would the value of the company increase if it accepted the better project (plane)?Enter your answer in million.

  What is the growth rate

ABC is expected to pay a dividend of $1.7 per share at the end of the year. The stock sells for $148 per share, and its required rate of return is 17.9%. The dividend is expected to grow at some constant rate, g, forever. What is the growth rate (..

  Computation payback period and npv and irr

Computation payback period and NPV and IRR decide which project we should select and explain why

  What was your total real rate of return on this investment

If the inflation rate last year was 4 percent, what was your total real rate of return on this investment?

  What should happen to the u.s. dollar compared to the euro

The Federal reserve just announced that it is taking action to lower interest rates in the United States. The European central bank is not lowering rates. What should happen to the U.S. dollar compared to the euro?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd