Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A European put on Microsoft shares with an exercise price of $50 and maturity of 3 months is trading at $10. The 3-month interest rate, not annualized, is 0.4%. What is the price of Microsoft stock that makes the put break- even?
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Transcribed Image Text:A European put on Microsoft shares with an exercise price of $50 and maturity of 3 months is trading at $10. The 3-month interest rate, not annualized, is 0.4%. What is the price of Microsoft stock that makes the put break- even?
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