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Question
A call option has a premium of $2.80, a strike price of $55, and 3 months to expiration. The current stock price is $52.20. The stock will pay a $1.25 dividend in one month. The risk-free rate is 2.5 percent. What is the premium on a 3-month put with a strike price of $55? Assume the options are European style.A. $2.08
B. $2.15
C. $3.32
D. $4.12
E. $6.51
Answer
This answer is hidden. It contains 71 characters.
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