What is the value of put option

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Reference no: EM131874179

1. The current price of a stock is $54, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $63 sells for $6.5. What is the value of a put option, assuming the same strike price and expiration date as for the call option?

2. Doya stock has an expected return of 13% and a standard deviation of 36%. Baccachew stock has an expected return of 26% and a standard deviation of 51%. The correlation coefficient between Doya and Baccachew is 0.6. What is the expected return in percent, of a portfolio invested 50% in Doya and 50% in Baccachew?

Reference no: EM131874179

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