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Unformatted text preview: $27 or $17, and that the annual riskfree rate is 6 percent. Given this information, determine the price of a call option on the stock that has an exercise price of $22 and that expires in one year. A. $0.98 B. $1.98 C. $2.98 D. $3.98 E. $4.98 17. The current price of a stock is $50 and the annual riskfree rate is 6 percent. A call option with an exercise price of $55 and one year until expiration has a current value of $7.20. Using the concept of putcall parity, determine the value of a put option written on the stock with the same exercise price and expiration date as the call option. A. $5.00 B. $6.00 C. $7.00 D. $8.00 E. $9.00...
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 Spring '08
 Staff
 Interest, Options

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