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2 out of 2 points
The current price of a stock is $50, the annual risk-free rate is
6%, and a 1-year call option with a strike price of $55 sells for $7.20.
What is the value of a put option, assuming the same strike price and
expiration date as for the call option?
Which of the following statements is CORRECT?
Deeble Construction Co.’s stock is trading at $30 a share. Call
options on the company’s stock are also available, some with a strike
price of $25 and some with a strike price of $35. Both options expire in
three months. Which of the following best describes the value of these