A put option that expires in six months with an exercise price of $45 sells for $4.25. The stock is currently priced at $41, and the risk- free rate is 3.50 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Call price $

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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H2.
A put option that expires in six months with an exercise price of $45 sells for $4.25. The stock is currently priced at $41, and the risk-
free rate is 3.50 percent per year, compounded continuously.
What is the price of a call option with the same exercise price? (Do not round intermediate calculations. Round the final answer to 2
decimal places. Omit $ sign in your response.)
Call price
Transcribed Image Text:A put option that expires in six months with an exercise price of $45 sells for $4.25. The stock is currently priced at $41, and the risk- free rate is 3.50 percent per year, compounded continuously. What is the price of a call option with the same exercise price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Call price
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