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Find the price p of a six-month strike put option

Jafee Corp. common stock is priced at $36.50 per share. The company just paid its $0.50 quarterly dividend. Interest rates are 6.0%. A $35.00 strike European call, maturing in 6 months, sells for $3.20. What is the price P of a 6-month, $35.00 strike put option?

(a) 0 = P

(b) $1.25 = P

(d) $1.55 = P

(e) $1.66 = P

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the price p of a six-month strike put option

Reference No:- TGS0679042

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find the price p of a six-month strike put option

Reference No:- TGS0679042

Recent Questions Asked Finance Basics

Q : Which spread position would use to create an arbitrage

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