You have the following information on six-month European options based on a common underlying stock:...
60.1K
Verified Solution
Link Copied!
Question
Finance
You have the following information on six-month European options based on a common underlying stock: Call options: - \\( \\$ 85.00 \\) strike options trade at \\( \\$ 12.58 \\). - \\( \\$ 87.50 \\) strike options trade at \\( \\$ 11.02 \\). - \\( \\$ 90.00 \\) strike options trade at \\( \\$ 9.51 \\). Put options: - \\( \\$ 90.00 \\) strike options trade at \\( \\$ 15.19 \\). - \\( \\$ 92.50 \\) strike options trade at \\( \\$ 17.25 \\). - \\( \\$ 95.00 \\) strike options trade at \\( \\$ 19.49 \\). If the continuously compounded risk free rate is \4.20, what does put call parity suggest is the current stock price? Report your answer without a dollar sign to four decimal places
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.