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Question
The price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the interest rate is 6.5%, what is the likely price of a European put at the same strike and expiration?A) $0.05
B) $0.13
C) $0.56
D) $0.88
Answer
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Related questions
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What is the total dollar cost to create a delta hedge position against a 200 short call position? Assume calls are priced at $4.16, the delta is 0.7644, and stock price is $73.00.
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