Ibm stock currently sells for 44 dollars per share over 5


IBM stock currently sells for 44 dollars per share. Over 5 months the price will either go up by 13.5 percent or down by -6.5 percent. The risk-free rate of interest is 7.0 percent continuously compounded. What is the value of a put option with strike price 45 and maturity of 5 months?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Ibm stock currently sells for 44 dollars per share over 5
Reference No:- TGS01465939

Expected delivery within 24 Hours