A call option is currently selling for $4.10. It has a strike price of $65 and seven months to maturity. The current stock price is $67 and the risk-free rate is 3.2 percent. The stock will pay a dividend of $2.25 in two months. What is the price of a put option with the same exercise price?
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A call option is currently selling for $4.10. It has a strike price of $65 and seven months to maturity. The current stock price is $67 and the risk-free rate i
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- A call option is currently selling for $4.2. It has a strike price of $85 and three months to maturity. The current stock price is $87, and the risk-free rate is 5.7 percent. The stock will pay a dividend of $1.3 in two months. What is the price of a put option with the same exercise price?A call option is currently selling for $4.60. It has a strike price of $60 and three months to maturity. A put option with the same strike price sells for $7.20. The risk-free rate is 6 percent and the stock will pay a dividend of $2.10 in three months. What is the current stock price?A call option is currently selling for $5.00. It has a strike price of $85 and ten months to maturity. A put option with the same strike price sells for $8.10. The risk-free rate is 4.6 percent and the stock will pay a dividend of $2.60 in three months. What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- A stock is currently selling for $39. Over the next two periods, the stock will move up by a factor of 1.29 or move down by a factor of 0.53 each period. A call option with a strick price of $50 is available. If the risk-free rate of interest is 3.2 percent per period, what is the value of the call option?A stock is currently selling for $59. Over the next two periods, the stock will move up by a factor of 1.15 or down by a factor of .87 each period. A call option with a strike price of $60 is available. If the risk-free rate of interest is 2.5 percent per period, what is the value of the call option?A call option is currently selling for $5.2. It has a strike price of $40 and five months to maturity. The current stock price is $42, and the risk-free rate is 5.4 percent. The stock will pay a dividend of $1.5 in two months. What is the price of a put option with the same exercise price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of a put option
- A stock is currently selling for $39. In one period, the stock will move up by a factor of 1.29 or down by a factor of .53. A call option with a strike price of $50 is available. If the risk-free rate of interest is 2.5 percent for this period, what is the value of the call option?A put option is currently selling for $5.8. It has a strike price of $65 and seven months to maturity. The current stock price is $71. The risk-free rate is 4.8 percent, and the stock will pay a $3.1 dividend in two months. What is the price of a call option with the same strike price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of a call optionA stock is currently priced at $74 and will move up by a factor of 1.20 or down by a factor of .80 over the next period. The risk-free rate of interest is 4.2 percent. What is the value of a call option with a strike price of $75?
- Consider a put option whose underlying asset is a stock index with 6 months to expiration and a strike price of $1000. Suppose the risk-free interest rate for the six months is 2% and that the option’s premium is $74.20. (a) Find the future premium value in six months. (b) What is the buyer’s profit is the index spot price is $1100? (c) What is the buyer’s profit is the index spot price is $900 Only typed answerThe current price of a stock is $33, and the annual risk-free rate is 6%. Acall option with a strike price of $32 and with 1 year until expiration has acurrent value of $6.56. What is the value of a put option written on the stockwith the same exercise price and expiration date as the call option?A stock with a current price of $20 will either move up to $22 or down to $18 over the next period. The risk-free rate of interest is 2.45 percent. What is the value of a call option with a strike price of $20?