The premium for a european 3-month 100-strike call is 683


Marie buys a share of stock for 100 and buys a European 3 month 100-strike put at the same time. The premium for a European 3-month 100-strike call is 6.83. The risk free interest rate is 7% per annum compounded quarterly. The profit is 0 for a spot price at expiration of X. Determine X.

Solution Preview :

Prepared by a verified Expert
Mathematics: The premium for a european 3-month 100-strike call is 683
Reference No:- TGS02266101

Now Priced at $10 (50% Discount)

Recommended (99%)

Rated (4.3/5)