This preview shows page 1. Sign up to view the full content.
Unformatted text preview: return if you bought the stock initially rather than purchasing a put option. 4. A 30strike 2 year call option costs $2 . 98 and a 30strike 2 year put option costs 5 . 51. If the current stock price is 35 and the continuous interest rate is 3%, nd the dividend rate. 5. A 55strike 3 year call option costs $6 . 39 and a 75strike 3 year put option costs 4 . 68. You purchase both a call and a put option by borrowing money. Find your prot in 3 years if the stock price is 40, 65, and 80....
View
Full
Document
This note was uploaded on 02/28/2012 for the course AMS 318 taught by Professor Timknapik during the Fall '10 term at SUNY Stony Brook.
 Fall '10
 TimKnapik

Click to edit the document details