Final answer:
The price of the put option can be estimated using the put-call parity formula, accounting for the given forward price, call option price, strike price, and the monthly compounded interest rate. However, the exact numerical answer would depend on further specifics such as compounding adjustments.
Step-by-step explanation:
Using put-call parity, the price of the put option can be estimated given the price of a call option, the current forward price, and the strike price, along with any interest rates for discounting.
Put-Call Parity formula: P + S = C + K / (1 + r)^t, where P is the put price, S is the spot price (forward price in this context), C is the call price, K is the strike price, r is the risk-free rate (compound monthly in this scenario), and t is the time to expiration in years.
Given the 9-month forward price is 20, the call option with a strike of 19 is trading at 3, the strike price is 19 and interest rate is 35% compounded monthly, we can calculate the estimated put option price. The formula rearranged to solve for P (put price) is: P = C + (K / (1 + r)^t) - S.
Although the exact numerical answer for the put option price requires more information such as continuous compounding adjustment and the current risk-free rate, it's crucial to remember that the annual interest rate should be converted to the monthly rate for this calculation due to monthly compounding.