Business, 12.03.2020 22:06 jos0305

The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months. You do not know whether it will go up or down, however. The current price of the stock is $110 per share, and the price of a 3-month call option at an exercise price of $110 is $6.53. a. If the risk-free interest rate is 8% per year, what must be the price of a 3-month put option on P. U.T. T. stock at an exercise price of $110? (The stock pays no dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 17:00

While information systems can be used to gain a strategic advantage, they have inherent risks. hershey foods, for example, crippled its halloween sales when its complex is system failed to support its supply and inventory needs during peak production season. this is an example of which specific is risk

Answers: 3

Answer

Business, 21.06.2019 20:40

Afirm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. the firm estimates that carrying cost is i = 30% per year, and that ordering cost is about $20 per order. the current price of the ingredient is $200 per ounce. the assumptions of the basic eoq model are thought to apply. for what value of annual demand is their action optimal?

Answers: 3

Answer

Business, 22.06.2019 05:00

Personal financial planning is the process of creating and achieving financial goals? true or false

Answers: 1

Answer

Business, 22.06.2019 14:40

In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?

Answers: 3

Answer

You know the right answer?

The common stock of the P. U.T. T. Corporation has been trading in a narrow price range for the past...

Questions