The risk-free rate is 42 percent and the stock will pay a


A call option is currently selling for $4.70. It has a strike price of $45 and four months to maturity. A put option with the same strike price sells for $7.70. The risk-free rate is 4.2 percent, and the stock will pay a dividend of $2.50 in three months. What is the current stock price?

Current stock price $...........

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Financial Management: The risk-free rate is 42 percent and the stock will pay a
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