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Question
A stock is currently selling for $40.85. A 3-month call option with a strike price of $40 has an option premium of $1.30. The risk-free rate is 2 percent and the market rate is 9.5 percent. What is the option premium on a 3-month put with a $40 strike price? Assume the options are European style.A. $0.00
B. $0.05
C. $0.15
D. $0.25
E. $0.35
Answer
This answer is hidden. It contains 51 characters.
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