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 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 price** [Input box]
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Transcribed Image Text:A 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 price** [Input box]
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Follow-up Question
A 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.)
X Answer is complete but not entirely correct.
Call price
$ 1.68 X
expand button
Transcribed Image Text:A 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.) X Answer is complete but not entirely correct. Call price $ 1.68 X
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Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
A 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.)
X Answer is complete but not entirely correct.
Call price
$ 1.68 X
expand button
Transcribed Image Text:A 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.) X Answer is complete but not entirely correct. Call price $ 1.68 X
Solution
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by Bartleby Expert
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