Option has a strike price of $75 and expires 65 days from today. The return on a 65-day T-bill is 3.5% per year compounded continuously. G current stock price is $58 per share and the standard deviation of returns on NY is 46%. What is the value of this pu
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Option has a strike price of $75 and expires 65 days from today. The return on a 65-day T-bill is 3.5% per year compounded continuously. G current stock price is $58 per share and the standard deviation of returns on NY is 46%. What is the value of this put option
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- A put option and a call option with an exercise price of $55 and three months to expiration sell for $1.15 and $5.30, respectively. If the risk-free rate is 4.2 percent per year, compounded continuously, what is the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current stock priceA put option and a call option with an exercise price of $115 and three months to expiration sell for $5.45 and $8.75, respectively. If the risk-free rate is 2.0% per year, compounded continuously, what is the current stock price? $111.13 $121.13 $117.73 $112.40The stock price of Copious Corp. is currently $30. The stock price 1 year(s) from now will be either $34 or $27. The annual risk-free rate is 1.4%. Using the binomial model, what is the value of a call option with an exercise price of $30 and an expiration date 1 year(s) from now?
- The current price of a stock is $20, and at the end of one year its price will be either $22 or $18. The annual risk-free rate is 2.0% (use daily compounding with 365 days/year), based on daily compounding. A 1-year call option on the stock, with an exercise price of $19, is available. Based on the binominal model, what is the option's value?(Please Show Work)The current price of a stock is $22, and at the end of one year its price will be either $27 or $17. The annual risk-free rate is 6.0%, based on daily compounding. A 1-year call option on the stock, with an exercise price of $22, is available. Based on the binomial model, what is the option's value? (Hint: Use daily compounding.)A stock is currently selling for $55 per share. A call option with an exercise price of $65 sells for $3.85 and expires in six months. If the risk-free rate of interest is 3.5 percent per year, compounded continuously, what is the price of a put option with the same exercise price?
- A call option is currently selling for $4.10. It has a strike price of $65 and seven months to maturity. The current stock price is $67 and the risk-free rate iA put option that expires in six months with an exercise price of $65 sells for $4.45. The stock is currently priced at $61, and the risk-free rate is 3.9 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Call priceA call option has a strike price of 55, expires in 6 months, and has a price of $5.04. If the annual risk free rate is 5%, and the current stock price is $50, what should the corresponding put with the same exercise price and expiration date be worth?
- A call option is currently selling for $4.2. It has a strike price of $85 and three months to maturity. The current stock price is $87, and the risk-free rate is 5.7 percent. The stock will pay a dividend of $1.3 in two months. What is the price of a put option with the same exercise price?A call option is currently selling for $4.60. It has a strike price of $60 and three months to maturity. A put option with the same strike price sells for $7.20. The risk-free rate is 6 percent and the stock will pay a dividend of $2.10 in three months. What is the current stock price?A call option is currently selling for $5.2. It has a strike price of $40 and five months to maturity. The current stock price is $42, and the risk-free rate is 5.4 percent. The stock will pay a dividend of $1.5 in two months. What is the price of a put option with the same exercise price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Price of a put option