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he price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annual interest rate is 6.7%, what is the price, based on put-call parity, of
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he price of a non-dividend paying stock is $55 per share. A 6-month, at the money call option is trading for $1.89. If the annual interest rate is 6.7%, what is the price, based on put-call parity, of a European put at the same strike and expiration?

User Haakon
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1 Answer

6 votes

Answer:

$0.135

Step-by-step explanation:

To solve the following, we should use the following method

For us to be able to determine the price base on put call parity

The formula for put call parity is gives as c + k = f +p, meaning the call price plus the strike price of both options is equal to the futures price plus the put price.

User Gabsferreira
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