Suppose TELSA's stock price is currently $20. A six-month call option on TELSA's stock with an exercise price of $18 has a value of $6.38. What is the price of an equivalent put option? The six-month risk- free interest rate is 5 percent per six-month period.

Suppose TELSA's stock price is currently $20. A six-month call option on TELSA's stock with an exercise price of $18 has a value of $6.38. What is the price of an equivalent put option? The six-month risk- free interest rate is 5 percent per six-month period.

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

Section: Chapter Questions

Problem 1PS

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Question

Suppose TELSA's stock price is currently $20. A six-month call option
on TELSA's stock with an exercise price of $18 has a value of $6.38.
What is the price of an equivalent put option? The six-month risk-
free interest rate is 5 percent per six-month period.
$1.47
$3.52
$5.06
%249.43
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