8. Assume a 3 month (90 day) call option on Coreman & Steel Corporation (a...
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8. Assume a 3 month (90 day) call option on Coreman & Steel Corporation (a maker of oil drilling equipment) stock is selling for $1.20. The corresponding put option (with the same strike price and three month expiration length) is selling for $6.70. If Coreman & Steel stock is currently trading at $19.70 per share, and has an annual dividend yield of 2.2%, at what strike price can the stocks three month put and call options can be exercised? (Assume a risk-free rate of 6.5%.)
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8. $25.50
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