Amazon options are european options


Problem:

In October 2011, a 15-month call on the stock of Amazon.com, with an exercise price of $380, sold for $46.60. The stock price was $380. The risk-free interest rate was 6%. How much would you be willing to pay for a put on Amazon stock with the same maturity and exercise price? Assume that the Amazon options are European options. (Note: Amazon does not pay a dividend.)

Note: Please explain comprehensively and give step by step solution.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Amazon options are european options
Reference No:- TGS0885029

Expected delivery within 24 Hours