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Assume a call option on Greshak Corp. currently sells for $6.00 in the market and the...

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Finance

Assume a call option on Greshak Corp. currently sells for $6.00in the market and the current rate on S-T Federal securities is5.00%. The call option on Greshak's stock has 4 months toexpiration and a strike price of $35.00. If the underlying sharesof Greshak Corp. sell for $46.00, what is the price of a put optionwith a $52.00 strike price and 4 months to expiration (assume theoptions are European style options)?  YOU MUSTSHOW ALL WORK TO RECEIVE CREDIT. MAKE SURE YOU USE AT LEAST 4DECIMAL PLACES IN ALL CALCULATIONS

Answer & Explanation Solved by verified expert
4.1 Ratings (850 Votes)
Current price of Greshak Corp S 46Strike Price of Put option E 52Expiry period t 4 months 412 03333 yearRisk free rate 5 paCall Price C 6Put Price P PUT CALL    See Answer
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