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Find estimated price of call option with an exercise price

A strategy consists of buying a market index product at $830 and longing a put on the index with a strike of $830. If the put premium is $18.00 and interest rates are 0.5% per month, what is the estimated price of a call option with an exercise price of $830?

A. $49.55
B. $47.67
C. $42.47
D. $45.26

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Finance Basics: Find estimated price of call option with an exercise price

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find estimated price of call option with an exercise price

Reference No:- TGS0675680

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find estimated price of call option with an exercise price

Reference No:- TGS0675680

Recent Questions Asked Finance Basics

Q : Describe the flow of budget data

Q : Average risk and an irr

Q : What is the growth rate it can support

Q : Write a program that will process a data set of information

Q : Find estimated price of call option with an exercise price

Q : Explain the term manufacturing or service overhead

Q : How much monthly rent cost should smith

Q : Determining the amount of the dividends paid

Q : What is the net present value of this project

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