Calculate the price of a put option


Problem:

Consider the following data for a European option: Expiration = 6 months; Stock price = $80; Exercise price = $75; Call option price = $12; Risk-free rate = 5% per year.

Required:

Question: Using put-call parity, calculate the price of a put option having the same exercise price and expiration date.

Note: Show all workings.

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Accounting Basics: Calculate the price of a put option
Reference No:- TGS0885028

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